Standard & Poor's Ratings Services said today that its ratings on CNOOC Ltd. and its parent, China National Offshore Oil Corp. (foreign currency; BBB/Stable/--), would not be affected by CNOOC Ltd.'s announcement that it intends to acquire an 8.33% equity interest in the North Caspian Sea Oil and Gas Project in Kazakhstan from BG International Ltd. for about US$615 million. CNOOC Ltd. (foreign currency; BBB/Stable/--) plans to fund the transaction with cash. The company has sufficient liquidity and financial flexibility to undertake such a transaction. The acquisition is consistent with CNOOC Ltd.'s strategy to expand its overseas reserves. Further acquisitions are likely. Standard and Poor's expects CNOOC Ltd. to adopt a prudent financial approach in pursuing these growth opportunities. The
