China's CNOOC Sells US Assets to Britain's INEOS

FILE PHOTO: The logo of China National Offshore Oil Corporation (CNOOC) is seen at its booth during the China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Florence Lo/File Photo
FILE PHOTO: The logo of China National Offshore Oil Corporation (CNOOC) is seen at its booth during the China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Florence Lo/File Photo
TT
20

China's CNOOC Sells US Assets to Britain's INEOS

FILE PHOTO: The logo of China National Offshore Oil Corporation (CNOOC) is seen at its booth during the China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Florence Lo/File Photo
FILE PHOTO: The logo of China National Offshore Oil Corporation (CNOOC) is seen at its booth during the China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Florence Lo/File Photo

China's CNOOC Ltd has sold its US subsidiary, together with its upstream oil and gas assets in the Gulf of Mexico, to British chemicals group INEOS, according to a CNOOC statement issued on Saturday.

The Chinese oil and gas major said CNOOC Energy Holdings USA entered into a sales agreement with a subsidiary of INEOS relating to CNOOC's upstream oil and gas assets in the US part of the Gulf of Mexico, Reuters reported.

The deal primarily includes 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 media. CNOOC and INEOS did not immediately respond to requests for comment.
The firm aims to optimize its global asset portfolio and will work with INEOS towards a smooth transition, CNOOC International Chairman Liu Yongjie said in the statement.

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

Reuters had reported earlier CNOOC was considering an exit from operations in Britain, Canada and the United States over concerns those assets could become subject to Western sanctions because China had not condemned Russia's invasion of Ukraine.



OPEC Sees Robust Oil Demand in Third Quarter

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)
The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)
TT
20

OPEC Sees Robust Oil Demand in Third Quarter

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)
The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais (X)

The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, said the group anticipates exceptionally strong demand for oil in the third quarter of this year, with only a narrow gap expected between supply and consumption in the months that follow.

According to Russia’s state news agency on Monday, Al Ghais shared these assessments with reporters on the sidelines of last week’s OPEC seminar in Vienna. He indicated that the organization foresees demand rising by 1.3 million barrels per day on an annual basis in 2025, driven largely by a resilient global economy.

He explained that this outlook suggests a particularly robust increase in consumption during the third quarter. Demand is also projected to stay healthy into the fourth quarter, while the difference between production and usage should remain minimal. Al Ghais noted that this dynamic is among the key factors encouraging the alliance of eight oil-producing countries to consider raising output once again.

OPEC’s latest oil market outlook, published last Thursday, forecasts that global demand will average 105 million barrels per day this year. The report predicts demand will climb further to 106.3 million barrels per day in 2026 and reach 111.6 million barrels per day by 2029.

Meanwhile, eight members of the broader OPEC+ coalition - which includes Russia among other allies - are moving to phase out production cuts that have been in place for years to help stabilize the market.

Five sources told Reuters that OPEC+ producers are leaning toward agreeing on another production increase in September.