DiamondWorks Inks Upstream Deal with PetroChina

DiamondWorks' subsidiary, Energem Petroleum, signed a Memorandum of Understanding with PetroChina International Limited. The Memorandum provides for joint venture exploration and production projects particularly in (but not limited to): Nigeria, Angola, Gabon, Central African Republic and the Republic of the Congo and a number of countries in East and North Africa. In terms of these arrangements, PetroChina International will provide its expertise and resources in conjunction with EP to identify and jointly bring into production suitable oil concessions both onshore and in shallow offshore areas. The financing, ownership and other participation in projects identified will be agreed on a project by project basis according to the project merits and requirements as these are forthcoming. The memorandum is initially valid for 12 months and was signed by the President of PetroChina International Limited, Mr Shou Xuancheng.

PetroChina International Limited (PIL) was established in 2001 as a 100% owned and controlled subsidiary of PetroChina Company Limited (PetroChina) to handle its overseas upstream operations. PIL became internationally known when it purchased U.S.-based Devon Energy's Indonesian assets for U.S. $216 million in April 2002. PetroChina was established as a joint stock company with limited liabilities under the Company Law of the People's Republic of China on November 5, 1999 as part of the restructuring of China National Petroleum Corporation (CNPC). In the restructuring, CNPC injected into PetroChina most of the assets and liabilities of CNPC relating to its oil exploration, production, refining and marketing and chemical and natural gas businesses. The American Depository Shares (ADSS) and H shares of PetroChina were listed on the New York and Hong Kong Stock Exchanges in April 2000.

PetroChina is one of Asia's biggest oil companies and employs in excess of 420,000 people. It declared a profit for 2003 of 69.6 billion Yuan (US$8.41 billion), 48 percent up from 2002. PetroChina is currently spending US$5 billion to find and pump oil and natural gas to meet soaring demand in China, which overtook Japan last year as the world's second-biggest oil user. PetroChina has 29 oil refining enterprises distributed mainly in China's northeastern and northwestern regions. With primary processing capacity exceeding 100 million tons, PetroChina provides the Chinese market with more than 40 percent of the total volume for gasoline, kerosene, diesel and lubricating oil each year. PetroChina owns 11,859 service stations on a self-operated, holding and franchised basis.

PetroChina chose EP as its partner for exploration and production in African oil fields because of EP's access to and good will towards a number of African oil producing countries.

Commenting on the PIL agreement with EP, Tony Teixeira, CEO of the Company, said: "The signing of the MoU with PetroChina International has created the framework for the undertaking of a number of very exciting and mutually beneficial exploration and production projects in the immediate future. It also signals the entry of EP and DiamondWorks into the burgeoning Chinese market."

DiamondWorks is a mining and mineral exploration company engaged in the acquisition, exploration, development and mining of diamond and other mineral properties and oil and gas resources. The Company's principal mineral properties are located in Sierra Leone, Angola and Central African Republic through wholly owned subsidiaries it specializes in commodities trading, the supply and sale of crude oil and refined petroleum products and procurement and logistics for the mining industry in Africa.

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