SHANGHAI: CNOOC Ltd, China’s prime offshore oil and fuel producer, plans to boost 35 billion yuan ($5.5 billion) through a public share sale in Shanghai subsequent month to fund oil and fuel excavation as Beijing prioritises vitality safety amid rising geopolitical dangers.
State-owned CNOOC, which is blacklisted by Washington, stated in a prospectus on Thursday it plans to promote 2.6 billion shares on April 12 and checklist thereafter on the Shanghai Inventory Change.
Hong Kong-listed CNOOC is benefiting from souring world oil costs as Russia’s conflict on Ukraine pushed up already excessive inflation. CNOOC expects first-quarter revenue to leap 62%-89% from a 12 months earlier.
The oil large stated it might use the share sale proceeds to fund seven oil area and one fuel area tasks in China and abroad, and to replenish capital. The corporate disclosed final September it aimed to boost 35 billion yuan.
“China’s demand for oil and fuel has been steadily rising, and its dependency on oil and fuel imports will increase yearly … The availability-demand scenario may be very grave,” CNOOC stated in its prospectus on Thursday.
“With China’s demand for oil and fuel rising, and the federal government’s excessive consideration to vitality safety, we anticipate Chinese language funding in oil and fuel exploration will enhance additional.”
CNOOC stated it had no enterprise in Ukraine, however its 10% stake within the Arctic LNG 2 mission in Russia may very well be susceptible to monetary sanctions triggered by Russia’s operations.
CNOOC, whose US shares have been delisted by the New York Inventory Change in October after Washington added it to an financial blacklist, stated it might face extra sanctions.
“We can’t predict if the corporate or its associates and companions will likely be affected by US sanctions in future, if insurance policies change,” CNOOC stated. – Reuters