China Oil Major CNOOC Has 'No Plan to Exit' Any Region: Executive
05.02.2022 By Ricardo Perez - NEWS

May 2, 2022 [Nikkei Asia] – Chinese state oil major CNOOC on Thursday shrugged off recent media reports that the company is considering withdrawing from oil field investments in the U.K., the U.S. and Canada to diminish its vulnerability to sanctions.

 

A global spotlight has hit China’s state oil companies, searching for any potential sale or acquisition of overseas energy assets amid Western-led sanctions targeting Russia for its invasion of Ukraine.

Xie Weizhi, CNOOC’s chief financial officer, told reporters at a quarterly earnings call that the company has “no plan to exit from any particular region.” All of CNOOC’s overseas projects are operating smoothly, he said, and the company has felt no impact from the Russia-Ukraine war or any related sanctions.

Xie stressed that CNOOC is “just like any other” oil company with upstream assets, seeking exploration and development projects worldwide to secure stable production. It engages in a “constant pursuit for opportunities to adjust and optimize the asset composition,” he said, a practice in line with global players.

This was the first time an executive from CNOOC, a core listed arm of China National Offshore Oil Corp., spoke publicly about the media reports. Xu Keqiang, who announced his resignation as chief executive on Thursday, told investors prior to CNOOC’s Shanghai listing last week that the company “will not comment on market rumors.”

Chinese oil companies are reportedly in talks with Western peers seeking to exit Russia, and Xie acknowledged that news reports of potential Chinese buyers are “particularly numerous.”

After Shell said last week it would sell the company’s 27.5% stake in the Sakhalin-2 liquefied natural gas project in the Russian Far East, various media outlets reported that all three Chinese oil majors — CNOOC, China National Petroleum Corp. and China Petrochemical, known as Sinopec — were negotiating to fill the vacuum.

ExxonMobil said last month it would “discontinue operations” and was “developing steps” to exit the Sakhalin-1 project. BP announced at the end of February that it would divest its 19.75% stake in Russian oil company Rosneft.

Xie said CNOOC “neither has a plan nor has taken specific actions” regarding these assets in Russia being departed by Western energy groups. It remains unclear how the exits are taking place, he said, as details are not disclosed. Xie noted that withdrawing from major energy assets usually requires consent from the host government.

But Xie did not rule out the possibility of stepping in, as he acknowledged that the company is “closely monitoring” these developments.

Pro Trial: Access 10,390 Tank Terminal and Production Facilities

10,390 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

China's Natural Gas Production Surged in First Half of 2024
07.15.2024 - NEWS
July 15, 2024 [Oilprice]- China’s natural gas production increased by 6% in the first half of t... Read More
Fore Part of Hull Launches in China for ‘World’s Largest FPSO Unit’
07.15.2024 - NEWS
July 15, 2024 [Offshore Energy]- Chinese state-owned engineering company ZPMC has launched the fo... Read More
Stolthaven Terminals and GES to Operate Brazil’s First Green Ammonia Export Terminal
07.15.2024 - NEWS
July 15, 2024 [Storage Terminals Magazine]- Stolthaven Terminals, in collaboration with Global En... Read More
ADCC Pipeline Starts Delivering Gas to Cheniere’s Corpus Christi LNG Plant
07.15.2024 - NEWS
July 15, 2024 [LNG Prime]- The ADCC pipeline has started delivering natural gas to Cheniere’s C... Read More