HONG KONG (Standard&Poor's) Sept. 6, 2011--Standard&Poor's Ratings Services said today that its rating on CNOOC Ltd. (AA-/Stable/--, cnAAA) is unaffected by the company's announcement that its net production loss will substantially increase following the suspension of operations at an entire oil field in northern China. We estimate that the loss of production at Penglai 19-3 will equate to about 6.7% of CNOOC's total attributable daily production in the first half of 2011. While this amount is significant, we still expect the company to generate Chinese renminbi (RMB) 18.0 billion-RMB20.0 billion in positive free operating cash flow in 2011 and RMB6.0 billion-RMB10.0 billion in 2012 (assuming no contribution from Penglai 19-3). In addition, CNOOC's liquidity position is
