CNOOC Limited to tap gas offshore Australia

China oil firm CNOOC Limited announced Tuesday that it had signed a Heads of Agreement with the North West Shelf gas projects on a new joint venture to develop North West Shelf gas in Australia, pending the result of the current Guangdong LNG supply bid.

According to the statement, the proposed joint venture, China LNG JV, targets China's LNG market for its gas development project.

CNOOC agreed to co-invest in the development North West Shelf gas project for the sale of LNG to China markets. Under the agreement, CNOOC Limited would invest with other participants in the venture that will produce and process natural gas for LNG supply targeted for China.

Wei Liucheng, Chairman and CEO of the Company said, ``CNOOC Limited has long expressed desire to secure upstream assets for LNG import. We are looking forward to similar agreements with all other potential suppliers,?? Wei Liucheng, Chairman and CEO of the Company said.

North West Shelf gas project is equally owned by BHP Petroleum, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Japan Australia LNG, Shell Development (Australia) Proprietary Limited and Woodside Energy Ltd.

State owned oil and gas firm Pertamina and BP Plc had recently been invited to participate in Guangdong supply bid along with several other LNG suppliers including North West Shelf. It is not known how the agreement would affect the chance other bid participants to win the bid. (alex)