Implicit support from the Chinese government Good growth prospects, supported by a successful reserves replacement strategy Competitive cost structure and long-life reserves 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, the company's good reserve growth prospects, its long-life reserves, and its competitive cost structure. These strengths are partly offset by the volatile nature of the independent oil and gas exploration and production sector, which requires large ongoing investment, and the company's aggressive overseas expansion strategy, particularly into higher-risk sovereign regions. The group is considered to be a commercial-related institution under
