By OGJ editors
HOUSTON, May 19 -- CNOOC Ltd., a unit of China National Offshore Oil Corp., has agreed to buy a stake in a new joint venture within Australia's North West Shelf (NWS) project for $348 million, said BHP Billiton Petroleum Pty. Ltd., the NWS owners' representative for the deal.
The agreement follows purchase agreements to supply gas to China's Guangdong LNG project.
CNOOC Ltd. is the vehicle through which China carries out oil and gas exploration, development, and production activities off China and internationally.
Last year, NWS participants and Guangdong LNG participants, including CNOOC, agreed to a 25-year contract to supply 3.3 million tonnes/year of LNG for Phase One of the Guangdong LNG project, beginning in late 2006 (OGJ Online, Nov. 22, 2002).
In the latest agreement, CNOOC agreed to buy 25% interest in the China LNG Joint Venture, a new company set up within the NWS project to supply LNG to the Guangdong LNG project. CNOOC will acquire title to 5.3% of NWS gas reserves and also the right to process its gas and associated liquefied petroleum gas and condensate through the NWS infrastructure.
Each of the six original NWS participants will hold 12.5% interest in the China LNG joint venture. Subject to regulatory approvals, CNOOC will pay each of the six participants $58 million.
CNOOC also will pay a tariff for access to the processing infrastructure. The transaction does not include equity in, or access to, oil reserves or oil production facilities.
Woodside Energy Ltd. operates NWS. Other partners, in addition to BHP Billiton, are BP Developments Australia Pty. Ltd., ChevronTexaco Australia Pty. Ltd., Japan Australia LNG (MIMI) Pty. Ltd., and Shell Development (Australia) Pty. Ltd.
