China’s third-biggest oil company, China National Offshore Oil Corp., faces a U.S. blacklist. The move comes as Trump plans new hard-line moves against China during final weeks of his term.
A Bloomberg reports, CNOOC hasn’t yet received any official notice or decision from any relevant U.S. government agency.
CNOOC’s operations in the South China Sea have been controversial because China claims drilling rights in waters far from its borders, and within 200 miles of countries like Vietnam and the Philippines.
In addition, CNOOC has been at the center of territorial disputes in the South China Sea since 2012, when it invited foreign drillers to explore blocks off Vietnam that Hanoi’s leaders had already awarded to companies including Exxon Mobil and OAO Gazprom, Bloomberg informs.
U.S. investors held 16.5% of the shares in CNOOC’s Hong Kong-listed unit, creating potential for major outflows. Moreover, President Donald Trump signed an order this month banning American investments in Chinese firms owned or controlled by the military.
CNOOC also owns U.S. oil and gas fields, partners with companies like Exxon Mobil Corp. on international projects, and uses American technology and equipment. Any disruption could have a “huge impact” on the company.