China’s CNOOC sells US assets to Britain’s Ineos

CHINA National Offshore Oil Corp (CNOOC) has sold its US subsidiary, together with its upstream oil and gas assets in the Gulf of Mexico, to British chemicals group Ineos, according to a statement issued on Saturday (Dec 14).

The Chinese oil and gas major said that CNOOC Energy Holdings USA entered into a sales agreement with a subsidiary of Ineos relating to CNOOC’s upstream oil and gas assets in the US part of the Gulf of Mexico.

The deal primarily includes non-operator interests in oil and gas projects such as the Appomattox and Stampede fields.

Ineos paid just under US$2 billion for the assets, according to a person with direct knowledge of the matter who was not authorised to speak to media.

CNOOC said that the transaction price was in line with market conditions but did not provide a figure, while Ineos declined to comment on the price.

The Chinese firm aims to optimise its global asset portfolio and will work with Ineos towards a smooth transition, CNOOC International chairman Liu Yongjie said in the statement.

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CNOOC has been sounding out potential buyers of its interests in US oil and gas fields since 2022.

Reuters had reported earlier that CNOOC was considering an exit from operations in Britain, Canada and the US over concerns those assets could become subject to Western sanctions because China had not condemned Russia’s invasion of Ukraine.