CNOOC says not aware of Tangguh price increase plan

CNOOC Ltd, China's largest offshore oil producer, denied on Monday media reports that it faces an increase in the price of LNG from BP-operated Tangguh LNG project in Papua, Indonesia

"We are not aware of any moves by BP to increase the price," chief financial officer Yang Hua said as quoted by The Standard in its Wednesday edition.

The project's owner, BP, was reported to be seeking a higher price from CNOOC as the original agreement was based on the maximum price of oil at the US$25 a barrel level.

The LNG from the Tangguh project has been earmarked for CNOOC's planned LNG terminal in Fujian province, which starts operations in 2008. (*)