CNOOC has monopoly drilling rights on huge undiscovered reserves of oil and natural gas in the South China Sea. More than 70 international oil companies have teamed up with CNOOC to win rights to drill in the area. CNOOC also has a special government-granted power to acquire up to 51% interest in any offshore oil and gas discovery in China's jurisdiction at no cost -- even when the discovery is made by a foreign company.
With new oil and gas found in the South China Sea by international companies every day, CNOOC gains new energy assets without having to pay a dime. Talk about a competitive advantage - it is no wonder the stock is up nearly 300% in the past five years, and 60% this year alone!