The Chinese National Offshore Oil Company (CNOOC) will take 25% in the new entity (CLNG), which will also comprise the remaining NWS partners, for approximately US$320 million. This includes a figure of 5% of the upstream reserves of the NWS project.
CNOOC's minimum estimated share of reserves would be approximately 1.1 trillion cubic feet of natural gas, and their share of associated liquids equates to approximately 210 million barrels of oil equivalent.
CNOOC chairman and CEO Mr. Wei Liucheng said the acquisition of a material stake in the CLNG JV and the upstream production and reserves offered his company immediate access to a world-class gas project with world-class partners.
"CNOOC Limited's participation, meanwhile, helps ensure a safe, reliable, and potentially growing supply of natural gas from Australia to the rapidly growing market in China," he said.
John Akehurst, Managing Director of Woodside Energy, operator of the NWS Venture, said that these arrangements are expected to be finalised over the coming months in parallel with the many other commercial agreements associated with LNG to China.
The financial details as outlined above are dependent on minimum levels of natural gas supplied to the Guangdong LNG terminal and the payment by the CLNG JV parties of a tariff for access to NWS Gas Project infrastructure.
