NORTH WEST SHELF VENTURE-CNOOC FORMALISE ACQUISITION AGREEMENTS
16 May, 2003
The North West Shelf Venture participants and CNOOC Limited today formalised agreements that provide for CNOOC subsidiary CNOOC NWS Private Ltd. to acquire an interest in NWS Venture titles and to secure rights to use NWS Venture infrastructure to process gas.
The agreements give effect to the key terms agreed with CNOOC and announced on 21 October 2002.
A new joint venture to supply China's Guangdong's LNG project is being established within the overall North West Shelf project. It is called the China LNG Joint Venture. CNOOC will hold a 25% share in the China LNG Joint Venture, with each of the existing NWS Venture participants taking 12.5%.
Subject to anticipated completion of regulatory and other approvals later this year, CNOOC will pay each of the current NWS Venture participants about US$58 million for approximately a 5.3% interest in the gas in NWS Venture titles.
The North West Shelf Venture and CNOOC have also signed agreements that give CNOOC rights to use NWS Venture infrastructure to produce and process gas and associated liquids from its acquired gas resources. CNOOC will pay a tariff to the NWS Venture participants for these rights.
The six equal participants in the North West Shelf Venture are: Woodside Energy Ltd. (operator); BHP Billiton (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; ChevronTexaco Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited.
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