Chinese state oil giant CNOOC sees potential for US-China energy cooperation

(Corrects quote attribution from CEO Huang Yongzhang to General Counsel Xu Yugao)

By Sam Li and Lewis Jackson

Aug 27 (Reuters) – Chinese state-owned oil and gas major CNOOC sees potential for energy cooperation between China and the United States, a senior executive said on Thursday, adding that the company would consider investments alongside U.S. partners in the future.

• China was a buyer of U.S. oil and gas until Beijing imposed tariffs on the products during last year’s trade war. While relations have improved since then, the tariffs remain in place and the energy trade is mostly frozen.

• During President Donald Trump’s visit to Beijing in May, U.S. officials raised the possibility of energy deals, including China buying more liquefied natural gas, although nothing has so far emerged.

• “The U.S. is currently the world’s largest producer and exporter of LNG, while China is currently the largest importer of LNG — so there is actually still a lot of room for cooperation in the future,” CNOOC General Counsel Xu Yugao said, without detailing any deals.

• Speaking after the company reported half-year results, Xu also said the company would work together with partners, including in the U.S., to invest where it believes value can be created for shareholders.

• CNOOC is among several Chinese energy companies to have long-term supply deals with U.S. LNG producers. Since the tariffs were imposed, these companies are reselling the cargoes instead of paying tariffs.

(Lewis Jackson and Sam Li; Editing by Kirsten Donovan)