The China National Offshore Oil Company Limited (CNOOC), China's largest offshore oil producer, has announced its second largest stock offering worth almost US$2 billion.

 

According to the offering, CNOOC(BVI) Ltd., the controlling shareholder company, will place within 14 days, 2.5 billion company shares at a price of 6.15 HK dollars per share.

 

The net proceeds from the subscription are expected to bring in approximately 13.78 billion HK dollars (US$1.72 billion).

 

"It is the largest capital market transaction since the company's IPO." Fu Chengyu, Chief Executive Officer of CNOOC Ltd. said, adding that strong market demand for the offering highlights the achievements of the company since its IPO in February 2001.

 

The net proceeds from the subscription will be used in part for capital expenditures at a Nigeria offshore oil field and as general working capital for the group's operating activities.

 

CNOOC is listed on both Hong Kong and New York stock exchanges.

 

(Xinhua News Agency April 29, 2006)