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CNOOC Limited (CEO)

(NYSE: CEO)

Summary

Faruqi & Faruqi, LLP Announces Investigation of CNOOC Limited (CEO)

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at CNOOC Limited (“CNOOC” or the “Company”) (NYSE: CEO).  

The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that:  (1) the Company had violated environmental laws and regulations; (2) one of the Company’s oilfields had suffered a serious oil spill which was causing extensive damage; (3) the Company would be responsible for cleanup of the oil spills, and was not the “non-operator” of the oilfield as CNOOC portrayed itself; and (4) the Company inadequately accounted for its contingent liabilities in violation of the Generally Accepted Accounting Principles.

On June 4, 2011, an oil spill occurred at CNOOC’s PL 19-3 oilfield. A second spill occurred at the PL 19-3 oilfield on June 17, 2011. Despite CNOOC’s attempts to conceal the news, news of the spills began to reach the market. On July 5, 2011, the State Oceanic Administration (“SOA”), China’s coastal regulator, acknowledged the spills had occurred. Thereafter, CNOOC downplayed the extent of the damage done by the oil spills and the impact it would have on the Company’s operations. On September 2, 2011, the SOA announced that it had ordered CNOOC and ConocoPhillips to immediately suspend all oil production at the PL 19-3 oilfield. On September 6, 2011, CNOOC and ConocoPhillips announced that they would establish a ‘Bohai Bay’ fund to address the environmental impact of the oil spills. On this news, CNOOC shares declined $9.39 on September 6, 2011. Then, on September 18, 2011, CNOOC and ConocoPhillips announced that they would establish a second Bohai Bay fund. On this news, CNOOC shares declined another $6.85 on September 19, 2011.

Take Action

If you purchased CNOOC securities between January 27, 2011 and September 16, 2011 and would like to discuss your legal rights, contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com.  Faruqi & Faruqi, LLP also encourages anyone with information regarding CNOOC’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 03/01/2012

Class Period:

  • 01/27/2011 - 09/16/2011

Send Information

If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.