CNOOC to acquire 12.5 percent interest in BP?s Papua PSCs

Anglo-American energy firm BP PLC on Thursday signed with China energy giant China National Offshore Oil Corp. (CNOOC) an agreement to give up to the Chinese firm 12.5 percent working interest in Papua oil and gas production sharing contract (PSC) Blocks.

The agreement followed another accord signed on Thursday between Indonesia?s state oil and gas firm Pertamina and CNOOC to supply 2.6 million tons of liquefied natural gas (LNG) annually to Fujian province, starting 2007, from BP?s Tangguh field in Papua province.

BP Indonesia president director Bill Schrader and CNOOC leaders did not disclose the value of the 12.5 percent working interest, while an industry source told Petromindo.Com that the two parties had agreed on the working interest value. ?But they have yet to agree on payment methods,? the source added.

CNOOC is Indonesia?s largest offshore oil producer with annual production of around 110,000 barrels per day.

CNOOC president director Wei Lieucheng told Petromindo.Com his company would continue increasing its presence in Indonesia. ?We are encouraged to seek more good investments in the country,? he said. (alex)