CNOOC unit eyes share of Gorgon field LNG project off Australia

CNOOC International Ltd. has signed an agreement with Chevron Australia Pty. Ltd. to explore the feasibility of acquiring equity interests in the Gorgon area off Australia and developing the LNG import market in China.


BEIJING, Aug. 13 -- CNOOC International Ltd. has signed an agreement with Chevron Australia Pty. Ltd. to explore the feasibility of acquiring equity interests in the Gorgon area off Australia and developing the liquefied natural gas import market in China.

LNG imports into Guangdong and adjacent markets in coastal China are planned to meet increasing demand for gas. The first phase of the Guangdong LNG project is designed to import 3 million tonnes/year from suppliers yet to be determined.

CNOOC International, which is 70.6% owned by China National Offshore Oil Corp., has an option to acquire its parent's equity interest in the Guangdong LNG terminal and associated infrastructure.

Wei Liucheng, chairman and CEO, said, "Natural gas development is a key ingredient of CNOOC Ltd.'s growth strategy. LNG is a good complementary to the offshore gas exploration and development efforts of CNOOC Ltd."

Chevron Australia's Managing Director Rhonda Zygocki said the agreement is an important step forward in the company's efforts to develop Gorgon field as an LNG project.

Gorgon field off western Australia is the nation's largest gas field with reserves of more than 9.6 tcf.

CNOOC is the dominant producer of oil and gas off China. As of Dec. 31, its proved reserves were 1.8 billion boe/d and production was 239,337 boe/d.

It has interests in 45 crude oil and gas properties in four major producing areas: Bohai Bay, the western South China Sea, eastern South China Sea, and East China Sea.

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