CNOOC controls the development of several receiving terminals, including the Fujian terminal, for which BP signed a 25-year supply agreement in September.

That agreement foreshadowed yesterday's sale, as it included the understanding that CNOOC could participate in the Tangguh field.

But the competition to supply China's growing energy needs is fierce as was highlighted late last year when Australia's North West Shelf project won the 25-year contract to supply CNOOC with LNG to a terminal being built in Guangdong province.

According to market commentators, yesterday's sale, which leaves BP with 37.2% of Tangguh, is expected to help BP's Chinese ambitions in the future.

The Tangguh field, which lies in Indonesia's Papua province and has proven reserves of 14.4 trillion cubic feet of gas, is a long-term growth project for BP and its partners. The first deliveries of LNG are expected in 2006.