China's biggest offshore producer CNOOC Ltd is preparing to exit one of the North Sea's largest field in a strategic shift of focus to newer oil and gas developments and away from Western assets, banking and industry sources said.
CNOOC has hired Bank of America to start preparing a formal sale of its North Sea assets, which could raise more than $3 billion, the four sources said.
CNOOC declined to comment. Bank of America declined to comment.
CNOOC acquired the North Sea assets as part of its $15 billion purchase of Canadian producer Nexen in 2013, in its largest overseas acquisition yet.
The deal was then seen as evidence of China's growing role in the international oil and gas industry as CNOOC took over the operatorship of one of Britain's largest oilfield Buzzard, whose crude is among the streams that set the North Sea Brent benchmark oil price.
The planned sale coincides with a sharp rise in global oil and gas prices following a tightening of global supplies and oil exporter Russia's invasion of Ukraine that began at the end of February.
CNOOC Ltd, also plans to raise about 35 billion yuan ($5.5 billion) next month in what will likely be China's 10th-biggest listing, to fund oil and gas extraction as Beijing prioritizes energy security amid rising geopolitical tensions.
State-owned CNOOC, which is blacklisted by Washington, said in a prospectus on Thursday it plans to sell 2.6 billion shares on April 12 and list thereafter on the Shanghai Stock Exchange.
CNOOC is taking advantage of soaring global oil prices as Russia's war on Ukraine pushes up already high inflation. CNOOC expects first-quarter profit to jump 62%-89% from a year earlier and its Hong Kong-listed shares hit two-year highs on Wednesday.
The oil giant said it would use the share sale proceeds to fund one gas and seven oilfield projects in China and overseas, and to replenish capital.
The company said in September it aimed to raise up to 35 billion yuan, potentially making the share sale China's 10th largest on record, trailing China Railway Construction Corp's 2008 initial public offering, according to Refinitiv data.
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