China-based CNOOC Limited (HK:0883) has offloaded its U.S. business, CNOOC Holdings U.S.A., to British chemical firm INEOS Group. The deal includes a stock purchase agreement with a subsidiary of INEOS Energy, which is a part of INEOS Group. In reaction to the announcement, CNOOC shares gained 1.24% as of writing in today’s session.
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CNOOC, or China National Offshore Oil Corporation, is an oil company specializing in the exploration of crude oil and natural gas. Meanwhile, INEOS Group is a leading chemicals company in the oil and gas market.
CNOOC Sells U.S. Portfolio to INEOS
According to CNOOC’s statement, the deal aims to enhance the company’s global portfolio of assets. The transaction includes upstream oil and gas assets in the U.S. Gulf of Mexico, including non-operator interests in oil and gas projects such as the Appomattox and Stampede fields.
The company has been considering selling its U.S. assets since 2022, following Beijing’s push for CNOOC and others to increase domestic production and invest in more expensive resources to combat the depletion of conventional oilfield reserves.
Additionally, Reuters reported in 2022 that CNOOC was exploring the possibility of exiting operations in the UK, Canada, and the U.S. due to concerns that these assets might face Western sanctions, as China had not condemned Russia’s invasion of Ukraine.
What Is CNOOC’s Share Price Target?
According to TipRanks, 0883 stock has received a Strong Buy consensus rating based on all Buy recommendations from five analysts. The CNOOC share price target of HK$23.20 implies an upside of 31.21% at the current trading level.
Year-to-date, CNOOC shares have gained over 35% in trading.
