The ratings on CNOOC Ltd. reflect the company's strong business and financial risk profiles. CNOOC Ltd. is the third largest oil and gas company in China and the country's leading offshore oil and gas producer, with a competitive full-cycle cost structure and above-average organic growth prospects. The company's financial leverage is conservative. Standard&Poor's considers CNOOC Ltd. to be a commercial-related institution under its government-related entities rating methodology, and our ratings are based on the CNOOC group members' underlying credit quality and government support. Although the long-term ratings on China National Offshore Oil Corp. (CNOOC; A+/Stable/--), the parent of CNOOC Ltd., and its subsidiaries are currently the same as the long-term rating on China (A+/Stable/A-1+), they should not be
