Implicit support from the Chinese government Good growth prospects, supported by a successful reserve replacement strategy Competitive cost structure and long-life reserves Improving geographical diversity and product diversity Strong financial profile Exposure to volatile oil and gas prices Large and increasing capital-development requirements Aggressive growth strategy, particularly in regions with higher sovereign risk The rating on CNOOC Ltd. reflects the implicit support the company derives from the Chinese government, its good reserve prospects, increasing geographical diversity, and improving product mix of crude oil and natural gas. In addition, CNOOC Ltd. has a competitive cost structure, long-life reserves, and a strong financial profile. These strengths are offset by the volatile nature of the independent oil and gas exploration and production sector,
