Faruqi & Faruqi, LLP Announces Investigation of CNOOC Limited

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Mar 01, 2012, 07:15 ET

NEW YORK, March 1, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at CNOOC Limited ("CNOOC" or the "Company") (NYSE: CEO).

(Logo: http://photos.prnewswire.com/prnh/20120119/MM38856LOGO )

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.

Request more information now by clicking here: www.faruqilaw.com/CEO

Take Action
If you purchased CNOOC securities between January 27, 2011 and September 16, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/CEO. You can also 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 [email protected] or [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding CNOOC's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Francis McConville, Esq.
[email protected]
Telephone: (877) 247-4292 or (212) 983-9330