Regional LNG: CNOOC to acquire interest in Gorgon LNG project
Friday, October 24 2003 - 12:22 AM WIB
China's biggest offshore oil and gas producer, would buy a 12.5 percent equity stake in the Gorgon development and take between 80 and 100 million tonnes of gas over 25 years, the Western Australian government said.
"CNOOC will also take a 12.5 percent equity stake in the joint venture which means all the other stake holders will sell down their share proportionately," spokesman Daniel Smith told Reuters.
ChevronTexaco's official when contacted by Reuters confirmed CNOOC would buy an interest in the A$11 billion ($7.6 billion) Gorgon gas development, but gave no further details.
The deal was due to be signed during a visit by Chinese Hu Jintao to the Australian capital Canberra on Friday.
"This signing today does represent a very significant development for Gorgon and we're confident that this will underpin Gorgon moving ahead to its next phase of development," ChevronTexaco spokesman Peter Coghlan told Reuters.
The Gorgon project -- in which ChevronTexaco holds 57.1 percent stake -- is centred on one of Australia's biggest untapped gas deposits and aims to produce its first LNG in 2008. In August, the Gorgon joint venture inked preliminary deals with ChevronTexaco and Royal/DutchShell -- which has a 28.6 percent stake in the project -- to sell four million tonnes of LNG per year into the west coast of North America.
ExxonMobil holds the remaining 14.3 percent stake in the Gorgon project.
The U.S. supply deals marked the first offtake agreements for the Gorgon project which is backed by proven gas reserves of 17 trillion cubic feet.
ChevronTexaco said last month the Gorgon partners were looking at five potential overseas markets in North America, China, South Korea and Japan and were in talks with 15 potential customers in Australia.
The LNG deal is CNOOC's second investment in Australia after it acquired a 25 percent interest in the China LNG joint venture, which was established within the North West Shelf venture to supply LNG over 25 years to the Guangdong LNG terminal from 2006.
CNOOC had also acquired 12.5 percent interest in Tangguh LNG project in Indonesia, which would supply some 2.7 million tons of LNG per year to the Chinese province of Fujian. (*)