CNOOC Sings MOU for Gorgon Offshore Australia

CNOOC Limited has signed a Memorandum of Understanding with Chevron Australia Pty Ltd, to explore the feasibility of acquiring equity interests in the Gorgon Area, offshore Australia and developing the gas market in coastal China.

The introduction of LNG into Guangdong and adjacent markets in coastal China is to meet increasing demand for gas in the area. The first phase of the Guangdong LNG project is designed to initially bring approximately 3 million tones of LNG to China from suppliers yet to be determined. CNOOC Limited holds an option to acquire its parent's equity interest in the Guangdong LNG terminal and associated infrastructure.

"Natural gas development is a key ingredient of CNOOC Limited's growth strategy. LNG is a good complementary to the offshore gas exploration and development efforts of CNOOC Limited," commented Mr. Wei Liucheng, Chairman and Chief Executive Officer of the Company. "The spirit of the MOU with Chevron is consistent with our desire to take an equity position in suppliers' upstream fields."

Chevron Australia's Managing Director Rhonda Zygocki said the MOU marked an important step forward in the company's efforts to develop the Gorgon field as an LNG project. "Chevron has enjoyed a long and productive relationship with CNOOC and this MOU is evidence of our commitment to pursue commercial discussions in respect to CNOOC taking an equity interest in Gorgon," Ms Zygocki said.

The Gorgon field is located in western Australia. It is the largest natural gas field ever discovered in Australia with certified hydrocarbon reserves in excess of 9.6 TCF.