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 Risks associated with the company's ambitious capital expenditure program and overseas expansions. 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, high capital expenditure requirements, and increasing uncertainties associated with the company's overseas expansions. The rating on CNOOC Ltd. is also
