CNOOC completes acquisition 12.5% interest in Tangguh LNG project

China's largest offshore oil and gas company, CNOOC Limited, announced Tuesday it has completed the acquisition of a 12.5 percent stake in the reserves related to Indonesia's Tangguh liquefied natural gas (LNG) project.

CNOOC said in September it would pay US$275 million to buy a 12.5 percent stake in the project from Anglo-American firm BP PLC.

The acquisition is part of a 25-year sale and purchase agreement for Tangguh to supply up to 2.6 million tons of LNG annually to a receiving terminal in Fujian province, China.

The Tangguh LNG project comprises three production sharing contract (PSC) areas: the Berau, Muturi and Wiriagar PSCs.

CNOOC said it bought the 12.5 percent stake through the acquisition of a 44 percent interest in the Muturi PSC and a 42.4 percent stake in the Wiriagar PSC.

"With this transaction, we have taken a significant step in executing our natural gas strategy in China's rapidly growing coastal gas market," Yang Hua, CNOOC?s senior vice president, said in a statement. (robert)