CNOOC To Invest in Fujian Gas Market Development

CNOOC has signed an agreement with Fujian provincial government on natural gas market development in Fujian. The agreement defines a joint investment commitment of increasing natural gas supply and gas market development in Fujian by both parties. Both parties are committed to sourcing gas from all viable sources, including from offshore exploration as well as from overseas. In recognition of supply and demand imbalance in Fujian, both parties agree to undertake initiatives to explore the feasibility of LNG importation. To turn local latent demand for natural gas to marketable demand, the parties also agree to invest in gas-fired power plants and related infrastructure.

"The agreement commits CNOOC and Fujian to increasing clean fuel consumption in Fujian. The joint commitment of the provincial government and an industry leader gives a powerful backing to the investment initiative", commented Mr. Wei Liucheng, Chairman and CEO of CNOOC Ltd. "It is also another very important step forward in implementing CNOOC's natural gas strategy. CNOOC Limited has the option to take its parent's working interest in potential investment projects that may be generated.