We report a change in the semimetallic nature of single-layer graphene after exposure to oxygen plasma. The resulting transition from semimetallic to semiconducting behavior appears to depend on the duration of the exposure to the plasma treatment. The observation is confirmed by electrical, photoluminescence and Raman spectroscopy measurements. We explain the opening of a bandgap in graphene in terms of functionalization of its pristine lattice with oxygen atoms. Ab initio calculations show more details about the interaction between carbon and oxygen atoms and the consequences on the optoelectronic properties, that is, on the extent of the bandgap opening upon increased functionalisation density.