Today, the Bureau of Industry & Security (BIS) added China National Offshore Oil Corporation Ltd. (CNOOC) to the list of US entities. Under the new rule, U.S. and non-U.S. exporters are generally prohibited from transferring items subject to U.S. Export Administration (EAR) regulations to the CNOOC without first obtaining a U.S. export license. As stated in the rule, license applications will be subject to a deemed refusal.
Certain exports of crude oil, condensates, aromatics, natural gas liquids, hydrocarbon gas liquids, natural gas plant liquids, refined petroleum products, liquefied natural gas, natural gas, synthetic natural gas and compressed natural gas to CNOOC are excluded from the licensing requirement, as are exports of items to joint ventures with persons from countries in country group A: 1 operating outside the sea of Southern China.
In the notice, the Commerce Department said CNOOC was added to the list of entities due to the company’s involvement in the South China maritime dispute. Suppliers and other companies doing business with CNOOC should carefully consider whether these rules apply to their operations and implement controls to prevent exports, re-exports or transfers of items to CNOOC, unless authorized by BIS.