China’s CNOOC sells US assets to Britain’s INEOS By Reuters

BEIJING/HONG KONG (Reuters) – China’s CNOOC (NYSE:) Ltd has sold its U.S. subsidiary along with upstream oil and gas assets in the Gulf of Mexico to British chemicals group INEOS, according to a CNOOC statement published on Saturday.

The Chinese oil and gas giant said CNOOC Energy Holdings USA has entered into a sales agreement with a subsidiary of INEOS regarding CNOOC’s upstream oil and gas assets in the US portion of the Gulf of Mexico.

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

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

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

CNOOC International President Liu Yongjie said in his statement that the Chinese company aims to optimize its global asset portfolio and will work with INEOS for a smooth transition.

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

Reuters had previously reported that CNOOC was considering exiting operations in the UK, Canada and the US over concerns that those assets could be subject to Western sanctions due to China’s failure to condemn Russia’s invasion of Ukraine.