CNOOC

Energy
NYSE:CEO
China

China National Offshore Oil and Gas Company (CNOOC), the biggest Chinese offshore producer with operations both in China and abroad, will see an impact on its oil and gas shipping business, due to the U.S. sanctions on several Chinese tanker owning firms, a senior CNOOC executive said on Thursday." (Oil Price, 10/24/2019).

--

"Chinese oil companies such as Sinopec [SASADZ.UL], CNOOC Ltd and others have managed to reduce their shipments of Iranian oil but it is unclear which Chinese government parties might still be buying Iranian oil, a senior U.S. energy official said on Tuesday." (Reuters, 9/10/2019).

--

As of August 27, 2019, CNOOC is listed on the Illinois Investment Policy Board list of Iran restricted companies.

--

As of August 15, 2019, the state of Iowa listed CNOOC on its Iran scrutinized companies list.

--

CNOOC is listed on the June 4, 2019 and July 12, 2019 Florida State Board of Administration list of prohibited investments (Scrutinized companies) for Iran related business.

--

CNOOC is listed on the June 2019 Alaska Retirement Management Board, Companies Doing Material Business with Iran list.

--

On June 30, 2019, New Jersey listed CNOOC on its state list of entities determined, based on credible information, to be engaged in prohibited activities in Iran.

--

As of June 1, 2019, the State of Ohio removed China National Offshore Oil company from its Scrutinized companies Iran list.

--

CNOOC was added to the the May 15, 2019 Iowa Public Employees' Retirement System Iran Prohibited Companies List.

--

CNOOC is listed on the March 2019 Alaska Retirement Management Board, Companies Doing Material Business with Iran list.

--

According to CNOOC 20-F Filings, the company cites in its risk section the potential for U.S. sanctions related to its affiliates’ operations in Iran and Sudan. In particular, one of the company’s noncontrolled affiliates continued to provide certain drilling and other related services in Iran. In 2011, CalSTRS staff met with executives of the company in its offices in Beijing. The company confirmed its parent may have ties to Iran, but it does not, and will not, seek business in Iran as the company has and is looking to purchase more assets in the United States. CNOOC is listed on the December 31, 2018 CalSTRs Portfolio of companies identified as possibly having ties to Iran and from which CalSTRs has divested from and restricted in 2018. While CNOOC does not appear to have direct ties to Iran, CalSTRS is uncomfortable with its parent company’s relations to the country. In 2012, CalSTRS divested holdings of CNOOC and designated the company as “Divested and Restricted.” CalSTRS has maintained the “Divested and Restricted” designation in 2018.

--

In 2017, the U.S. states of Alaska, California, Connecticut, Florida, Georgia, Illinois, Mississippi, New Jersey, New York, Ohio, Pennsylvania, South Carolina , Tennessee and     South Dakota listed CNOOC on its Iran scrutinized companies list rendering CNOOC ineligible for investment and/or state contracting.

--

Several media outlets have recently reported that CNOOC is seeking to significantly expand its operations in the Iranian market.  On January 3, 2017, the National Iranian Oil Company (“NIOC”) listed CNOOC as one of the “designated 29 non-Iranian companies [] qualified to participate in its pending tender round for upstream projects.”  (Oil & Gas Journal Website, “NIOC qualifies 29 firms for tender round,” 1/3/2017).  

--

"Rahmanloo stated that one of his delegation’s goals for the trip to Shenzhen was to establish contacts at the China National Offshore Oil Corporation (CNOOC), the state-owned energy giant that has relied heavily on foreign equipment in its efforts to tap offshore oil and gas fields. Liu Taiyuan, director of the subsea division of CNOOC’s Shenzhen branch, declined to comment on whether the company would do any business with Khazar, only noting that 'we are open to international partnerships.' A senior executive at Technip, the French procurement, engineering and construction firm specialized in the energy industry, said that given its status as one of China’s most important companies, CNOOC is unlikely to do a deal as shady as re-selling Khazar equipment bought from GE or other Western technology providers restricted by sanctions." (Financial Times, "Iran seeks Chinese proxies to further offshore drilling ambitions," 5/31/2013) 

 

--

Last year’s foreign buying spree was not the first for the likes of China National Petroleum Corporation (CNPC), China National Offshore Oil Corporation (CNOOC) and China Petrochemicals Corporation (Sinopec), but previously the Chinese firms had mostly purchased assets in Africa and Central Asia, which typically produce oil similar to China’s own crude... All three of China’s biggest state-controlled oil companies have clinched deals with Tehran to develop some of Iran’s biggest oil and gasfields. Last year’s crop included agreements for CNPC to develop phase 11 of the massive South Pars gasfield to develop three oilfields. (The National, "China's global quest for oil," 1/9/10)

--

"The China National Offshore Oil Corp (CNOOC) is in talks to finalize a $16 billion dealt to develop the North Pars gas field and build a liquefied natural gas (LNG) plant." (Reuters, "FACTBOX: Iran's major oil customers, energy partners," 8/19/09)

--

"China's state-backed offshore oil company CNOOC is negotiating a $16 billion deal to develop a gas field and build an LNG terminal." (Reuters, "Iranians Turning To Asia For Funding, Technology," 8/21/08)

--

"We cannot predict the interpretation or implementation of government policy at the U.S. federal, state or local levels with respect to any current or future activities by CNOOC or its affiliates in countries that are the subject of U.S. sanctions. It is possible that the United States could subject CNOOC to sanctions due to these activities. Certain U.S. states and colleges that have restrictions on the investment of public funds or endowment funds, respectively, in companies that are members of corporate groups with activities in certain countries that are the subject of U.S. sanctions, such as Iran or Sudan. It is also possible that the activities by CNOOC or its affiliates may affect the investment in our shares by such U.S. states and colleges." (Company Website, 2008 Annual Report On Form 20-F)

No response at this time.