Large reserve base; Good growth opportunities; Low cost position; and Strong financial profile. The volatile nature of oil and gas prices; The risks associated with bringing on stream a large undeveloped reserve base; and High capital expenditure requirements. The foreign currency rating on CNOOC Ltd., mainland China's third-largest oil and gas company, reflects its large reserve base, good growth opportunities, low cost position, and strong financial profile. These factors are offset by the volatile nature of oil and gas prices, the risks associated with bringing on stream a large undeveloped reserve base, and high capital expenditure requirements. The rating on CNOOC Ltd. is also constrained by Standard & Poor's foreign currency sovereign rating on the People's Republic of China (BBB/Stable/A-3).
