Better safe than sorry! Beijing is going to reduce its dependence on the West, as illustrated by the move by the China National Offshore Oil Corporation (CNOOC).
Reuters reveals China’s largest state-owned oil and gas producer is pulling out of Canada, the United States and the United Kingdom, after having to withdraw from the New York Stock Exchange. It will redeploy its portfolio to South America and Africa.
Its change comes at a time when the United States is threatening China if it buys Russian oil under sanctions. Threatened in turn with sanctions for its support of Russia, “Beijing wants to avoid having some of its assets confiscated abroad,” writes the French daily La Tribune.
Not only has China refused to condemn the Russian operation, but it intends to maintain good relations with Russia, whose hydrocarbons and other raw materials China is interested in securing supplies from.
By acquiring the Canadian producer Nexen in 2012 for $15.1 billion, CNOOC had risen to become one of the world’s major hydrocarbon producers.
