China National Offshore Oil Corporation

In June 2005, a CNOOC Group company (NYSE and Hong Kong-listed public company CNOOC limited) made an $18.5 billion cash offer for American oil company Unocal Corporation, topping an earlier bid by ChevronTexaco.[4] Unocal's oil interests in Central Asia were considered a strategic fit for the company. On July 20, 2005, Unocal announced that it had accepted an buyout offer from ChevronTexaco for $17.1 billion, which was submitted to Unocal stockholders on August 10. On August 2 CNOOC Limited announced that it had withdrawn its bid, citing political tensions in the United States.[5][6]

Despite a hands-off approach from the Bush administration, a group of Democrats and Republicans in Congress organized opposition to the CNOOC Limited bid. They argued that with $13 billion of CNOOC Limited's bid for Unocal coming from the Chinese government, the offer was not a free market transaction. American corporations were prohibited from purchasing assets in China, and it was also argued that foreign, communist ownership of oil assets might be a regional and economic-security risk; Unocal had sensitive deep-sea exploration and drilling technology.[7] The Economist and other sources tried to discredit the security threat, and CNOOC was willing to undergo a US security review.[8] Congressional delays and calls for inquiry deterred the CNOOC Limited bid.[5][6]

The company was advised by Goldman Sachs.[9] CNOOC Limited had a reputation for acting independently of the Chinese government, and had not notified government officials before bidding for UNOCAL.[9] The political backlash in the United States caused the Chinese government to increase its oversight of Chinese companies, to avoid future risks to Sino-American relations.[9]

CNOOC Limited faces challenges in the domestic market. Its rivals, CNPC and Sinopec, have been permitted to conduct offshore exploration once monopolized by CNOOC Limited. In accordance with the commitment by the Chinese government to join the World Trade Organization, the oil market will be opened to non-Chinese companies (such as Exxon Mobil and BP) by the end of 2006. CNOOC Limited's smaller domestic competitors have been trying to break the monopoly of the three major NOCs in the industry.

In conjunction with 2009 failed deal between Aluminum Corporation of China Limited and mining giant Rio Tinto, CNOOC's failed UNOCAL deal was perceived in China as part of a coordinated effort in the West to stall China's rise.[4]

Adding 61 percent to Nexen's July 20, 2012 stock price, on July 23 CNOOC agreed to buy Nexen for $15.1 billion (China's largest foreign deal).[10] The Canadian government's Investment Canada Act was used to determine if the sale was a "net benefit" to Canada.[11] In addition to Canadian authorities, the acquisition had to be approved by the Committee on Foreign Investment in the United States.[12] On 7 December the sale was approved by the Canadian government,[13] and on February 12, 2013, it was approved by U.S. regulators.[14]

In June 2014, CNOOC agreed a deal with BP worth around $20 billion that would see the latter supplying the former with liquefied natural gas.[15]

On June 5, 2018, CNOOC Gas and Power Group Co. Ltd., a subsidiary of China National Offshore Oil Corporation (CNOOC), China's largest LNG importer and terminal operator, has recently signed a memorandum of understanding (MOU) with the Philippine fuel retailer Phoenix Petroleum to study, plan, and develop a liquefied natural gas (LNG) receiving terminal project in the Philippines.[16]

In September 2018, it also signed a memorandum of understanding with Nigerian National Petroleum Corporation on the production of biofuel.[17]

In 2019, CNOOC was awarded the Theoretical Technology and Major Discoveries of Deep Large-scale Condensate Gas Field Exploration in the Bohai Bay Basin by the National Award for Science and Technology Progress, a state-level science and technology award established by the Chinese State Council.[18] [19]

CNOOC brought LNG to China with its Dapeng LNG Terminal in Guangdong, which received its first shipment (from the NWS LNG project in Australia) in July 2006.

As of 2023, 2% of CNOOC's reserves are located in Africa and 5% of CNOOC's daily production comes from Africa.[24]^: 165 In Uganda, CNOOC has partnered with Total and Tullow Oil to develop the Lake Albert basin deposit, where CNOCC is also the operator. A CNOCC subsidiary owns part of multiple enterprises in Nigeria, and stakes in enterprises in Senegal, Republic of Congo, Algeria, and Gabon.[24]^: 165

Also as of 2023, CNOCC has planned a liquified natural gas plant in Mozambique.[24]^: 165 CNOCC has a contract to buy much of the liquid natural to be produced at the plant.[24]^: 165

In October 2004, contract-sharing was negotiated in Burma by Myanmar Oil and Gas Enterprise, China Huanqiu Contracting and Engineering Corporation and CNOOC's Singaporean joint-venture partner, Golden Aaron. Golden Aaron is run by Cecilia Ng, wife of Steven Law; Law is the son of Lo Hsing Han, known as the "godfather of heroin".[25] In 2008, the US Treasury intimated that CNOOC cooperates with a company run by a family known for heroin trafficking.[25]

In 2007, CNOOC was involved in a clash with Burmese workers who threw stones at the company offices. Ten workers from Kyaukphyu were detained and questioned by authorities after a dispute with CNOOC over low wages, long hours,[25] reported underpayment and the mistreatment of inhabitants.[26]

In 2008, CNOOC was accused of abuses of human rights in Burma. Arakan Oil Watch stated in a report that the company "left behind such a trail of abuses and environmental contamination on Ramree Island that outraged locals attacked their facilities".[27] CNOOC's actions in Burma have been compared to that of communist officials in rural China, where entrepreneurs desiring development opposed by local residents steamroll their opposition.[27] The Shwe gas project has been linked with land confiscation and human-rights abuses.[28]

CNOOC has been accused of participating in the persecution of Falun Gong by collaborating with the Chinese Communist Party to send Falun Gong CNOOC employees to labour camps and mind-control facilities, reducing their pay and preventing them from receiving benefits (or regular wages) unless they renounce their beliefs.[29][30][31]

On June 4, 2011, the U.S. company ConocoPhillips, operating in the Penglai 19-3 oilfield, caused an oil spill from a seafloor leak which lasted until June 7.[32] This was followed by a second leak on June 17, which was contained within 48 hours.[33] The leaks polluted a total of more than 840 square kilometers of clean water in Bohai Bay.[34] Fifty-one percent of the oilfield is owned by CNOOC, and forty-nine percent owned by ConocoPhillips.[33] The first leak was not made public until July 5, 2011.[34]

Fire and oil spill on April 6, 2021, as seen by the Sentinel-2 satellite.

Another fire and oil spill is taking place since April 6, 2021, with workers missing.[35]

On July 11, 2011, an explosion occurred at the Huizhou refinery in the Daya Bay Economic and Technical Development zone in Guangdong. The refinery is 40 kilometres (25 mi) from the Daya Bay Nuclear Power Plant.[36]

In December 2020, the United States Department of Defense named CNOOC as a company "owned or controlled" by the People's Liberation Army and thereby prohibited from receiving any American investment.[37] In response to the executive order, in February 2021, NYSE commenced the process of delisting CNOOC.[38]