CNOOC Seeks to Raise $5.4B to Fund Key Oil and Gas Projects

Chen Aizhu
Monday, September 27, 2021

China's state-run offshore oil and gas major CNOOC Ltd said it plans to raise up to 35 billion yuan ($5.41 billion) in a new share issue on the Shanghai stock exchange to fund several key oil and gas projects.

The domestic fund-raising plan came as U.S. sanctions on CNOOC has forced global investors to exit or scale back investing in the firm.

CNOOC plans to issue no more than 2.6 billion shares in the Chinese currency, or about 5.82% of company's share capital, the firm said in a filing to the Hong Kong stock exchange late on Sunday.

"We see the A-share initial public offering as a reasonable move for CNOOC to maintain its fast pace of production growth amid difficulty in overseas financing due to the U.S. sanctions," Daiwa said in a research note.

The funds will be used to finance key projects such as the Payara oilfield in Guyana, its first wholly-owned deepwater gas project Lingshui 17-2 and oilfield Liuhua 11-1/4-1, both in the South China Sea.

China's policy to encourage more domestic listing is another driver for this fundraising plan, said a Beijing-based industry official.

CNOOC's Hong Kong-listed shares last traded up 5.7% on Monday at HK$8.53 around 0400 GMT, having gained 14.5% so far this year. 

($1 = 6.4662 Chinese yuan renminbi) 

(Reporting by Chen Aizhu; Editing by Kim Coghill and Christopher Cushing)

Categories: Finance Energy Industry News Activity Production Asia

Related Stories

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

MDL Secures Cable Laying Job in Asia Pacific

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

Brownfield Output Decline Accelerates, says IEA

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

DOF Secures Moorings Hook-Up Job in Asia Pacific

PTTEP Hires McDermott for Deepwater Subsea Job off Malaysia

PTTEP Greenlights $320M Offshore CCS Project at Arthit Gas Field in Thailand

Marco Polo Picks Salt Ship Design for Next-Gen Offshore Energy CSOV

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Current News

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

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