The foreign operator of one of the North Sea's biggest fields could be set to exit the UK with a $3billion sale.
Reports emerged last night claiming that CNOOC is preparing to quit the North Sea as the geopolitical fallout from the war in Ukraine continues.
The Chinese state-owned firm is the operator of Buzzard oil field, one of the UK’s highest-producing fields, where it has a 43.2% stake.
It is also an operating partner in the Golden Eagle field, with a 36.5% holding, and has interests in the Scott, Telford and Rochelle fields.
The deal, if it proceeds, would be one of the biggest on the UKCS for years.
Reuters reports that the firm has hired Bank of America to start preparing a formal sale of its North Sea assets, which could raise more than $3billion.
CNOOC declined to comment. Bank of America also declined to comment.
The move is part of a strategic shift of focus to newer oil and gas developments and away from Western assets, banking and industry sources said.
CNOOC acquired the North Sea assets as part of its $15billion 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.
One of Reuters' sources said CNOOC's top management find managing former Nexen assets in Western nations such as Britain, Canada and the United States "uncomfortable" because of red tape and high operating costs compared with developing nations.
Growing trade tensions between the United States and China, exacerbated by China's stance over the war in Ukraine, have also played a role, as China fears possible tarrifs and sanctions in the future could impact its investments, Reuters claimed.