Oil & Gas

CNOOC seeks $2bn sale of US assets – report

China’s CNOOC is reportedly seeking a $2 billion sale of its assets in the US as sanction concerns ramp up.

Reuters reports through anonymous sources that the firm has hired JP Morgan to advise on the sale.

CNOOC owns shale assets onshore in the US, along with stakes in the Appomattox and Stampede fields in the Gulf of Mexico.

The news agency reports that Harbour Energy (LON: HBR) is in talks for the Gulf of Mexico assets.

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It comes as CNOOC has been considering an exit of its operations in the North Sea, US and Canada over dears of western sanctions from China’s refusal to condemn Russia’s invasion of Ukraine.

CNOOC and JP Morgan did not comment on the sale.

Reports have suggested that Norway’s Equinor has been seeking to acquire CNOOC’s UK portfolio.

Last month one of the firm’s top bosses refused to rule out a sale of its North Sea assets amid mounting speculation on its UK portfolio.

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Norwegian newspaper DN said Equinor is “one of at least two companies” in the running, citing unnamed sources close to the company and the UK financial sector.

Speaking to reporters in October, CNOOC chief financial officer Xei Weizhi did not comment directly on a deal, but left the door open to offers coming in at a better price than than the profitability CNOOC currently achieves under its own operation.

“The company has consistently been optimising global assets to better fit its technological edge as well as management style,” he said.

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