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

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

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

MDL Secures Cable Laying Job in Asia Pacific

Brownfield Output Decline Accelerates, says IEA

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

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

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

Current News

Sponsored: UAE Breaks Ground on World First Gigascale Renewable Energy Project

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

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