CNOOC Energy Holdings shakes hands with INEOS Energy in surprising deal
- CNOOC Limited's U.S.-based subsidiary signed an agreement to sell its U.S. upstream oil and gas business.
- The sale involves non-operating interests in key projects such as the Appomattox and Stampede fields.
- This transaction aims to optimize CNOOC's global asset portfolio and is pending regulatory approvals.
On December 13, 2024, CNOOC Limited announced that its subsidiary, CNOOC Energy Holdings U.S.A. Inc., signed a Stock Purchase Agreement (SPA) with INEOS Energy. This agreement involves the sale of CNOOC Holdings U.S.A. Inc., which oversees CNOOC's upstream oil and gas operations in the U.S. Gulf of Mexico. The assets being sold primarily consist of non-operating interests in significant oil and gas projects, such as the Appomattox and Stampede fields. In this agreement, Mr. Liu Yongjie, Chairman of CNOOC International Ltd., stated that the transaction aligns with general business principles and is designed to optimize the company’s global asset portfolio. The deal will be finalized after obtaining necessary regulatory approvals and satisfactory completion of SPA terms. Throughout this transitional period, CNOOC Limited plans to collaborate with INEOS Energy to ensure a seamless transfer of assets and operations, emphasizing continuity and stability in their U.S. operations. This sale reflects CNOOC's strategic move to streamline its asset management and enhance its operational efficiency while focusing on its core business principles. The implications of this agreement may allow CNOOC Limited to better navigate the competitive landscape of the oil and gas industry, especially in light of recent fluctuations in crude oil and natural gas prices, macroeconomic challenges, and environmental regulations. Such strategic transactions are essential for CNOOC as it faces evolving market dynamics and increasing competition in the global energy market.