WA Government welcomes Chinese company to North West Shelf

20/05/03
State Development Minister Clive Brown has welcomed the North West Shelf Venture (NWSV) partners and the China National Offshore Oil Corporation (CNOOC) formalising an agreement which will see CNOOC acquire an interest in the upstream production and reserves of the North West Shelf Project.
CNOOC will pay US$348million to acquire 25 per cent of the China LNG Joint Venture to be established within the NWS Project, as well as acquiring a 5.3 per cent interest in certain production licences, retention leases and an exploration permit.
"The agreement complements the selection of Australia as the preferred supplier to China's first LNG project, and confirms Western Australia as a competitive, reliable and secure LNG supplier to multiple markets," Mr Brown said.
CNOOC will not be involved with the existing NWS Venture contracts for LNG sales to Japan or the recent sales agreement with Korea, nor will it own any NWS offshore or onshore infrastructure, or have any interest in oil production.
"This is CNOOC's first investment in Australia and an important milestone in the strengthening trade and investment relationship between China and Western Australia," the Minister said.
"The success of the venture could lead to further Chinese investment in the petroleum industry in this State, as China has successfully done with our iron ore industry."
CNOOC is one of the largest independent crude oil and gas exploration and production companies in the world, with interests in 45 oil and gas properties in four major producing areas.
Minister's office: 9222 9699