U.S. Blacklists China's CNOOC over South China Sea Actions

David Shepardson, Alexandra Alper
Thursday, January 14, 2021

The Trump administration added China’s CNOOC to a U.S. economic blacklist on Thursday, accusing the oil giant of helping Beijing intimidate neighbors in the South China Sea and ratcheting up tension days before U.S. President-elect Joe Biden takes office.

Alongside blacklisting CNOOC, the Commerce Department added China’s Skyrizon to the Military End-User (MEU) List over its ability to develop military products including aircraft engines, restricting its access to U.S. exports.

CNOOC and a legal representative of Skyrizon did not immediately respond to requests for comment.

The administration of President Donald Trump, who promised a tough line on China on taking office, has kept up the pressure in its final days, targeting what Washington sees as Beijing’s bid to use corporations as a means to harness civilian technologies for military purposes.

“China’s reckless and belligerent actions in the South China Sea and its aggressive push to acquire sensitive intellectual property and technology for its militarization efforts are a threat to U.S. national Security and the security of the international community,” said Wilbur Ross, secretary of the Commerce Department, which oversees the so-called entity list.

Companies on the entity list must be granted a special license from the Commerce Department before they can receive exports of high-tech items from U.S. suppliers.

The United States has long opposed China’s expansive territorial claims on the potentially resource-rich South China Sea. Washington accuses Beijing of seeking to intimidate other Southeast Asian coastal states.

China says the United States has sought to stir up controversy over maritime sovereignty claims in the area and has tried to destabilize the region by sending U.S. military ships and planes to the South China Sea.

“CNOOC acts a bully for the People’s Liberation Army to intimidate China’s neighbors, and the Chinese military continues to benefit from government civil-military fusion policies for malign purposes,” Ross added in the statement.

The Commerce Department also accused CNOOC of harassing and threatening offshore oil and gas exploration and extraction in the South China Sea, “with the goal of driving up the political risk for interested foreign partners, including Vietnam.”

Last month, CNOOC was added to a U.S. blacklist of alleged Chinese military companies, forcing U.S. investors to shed their holdings in the company by November 2021.


(Reporting by David Shepardson and Alexandra Alper; Additional Reporting by Brenda Goh; Editing by Chizu Nomiyama and Edmund Blair)


Categories: Offshore Energy Industry News Activity Asia North America Sanctions

Related Stories

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

ABS Approves Hanwha Ocean’s FPSO Design

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

BP Sets Eyes on India’s Oil and Gas Opportunities

Joint Venture Partners Ink Commercial Deals to Develop Gas Reserves at Azerbaijan’s ACG Field

First Oil Starts Flowing at CNOOC’s South China Sea Field

SBM Offshore’s FPSO for ExxonMobil’s Guyana Oil Project Takes Final Shape (Video)

Korea's Hanhwa Sets Out Plan for Full Takeover of Singapore's Dyna-Mac

ADNOC Signs 15-Year LNG Supply Deal with Indian Oil

Current News

EnQuest to Acquire Harbour Energy's Vietnamese Assets

CNOOC Boosts Dongfang Gas Fields Output with New Platform Coming Online

Petronas to Retain National Authority After Sarawak Gas Deal

Yinson Production Scoops $1B Investment to Upscale FPSO Business

Petronas Greenlights Hidayah Field Development Off Indonesia

Abu Dhabi's NMDC Group Gets $1.1B Subsea Gas Pipeline Job in Taiwan

BP Targets 44% Oil, 89% Gas Increase from India’s Mumbai High Field

US Operator Finds Oil Offshore Vietnam

BP to Help Boost Oil and Gas Output at India’s Largest Producing Field

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com