Total may team up with CNPC for gas project in China

Apr. 23, 2009 (China Knowledge) - Total SA, a France-based oil titan, announced on Sunday that it may set up a JV with China National Petroleum Corp (CNPC), parent of PetroChina<601857><857><PTR>, to jointly explore gas field in China, the People's Daily reported.

Christophe De Margerie, CEO of Total SA, said the JV plan is also supported by chairman of PetroChina. He estimated the JV will be officially inaugurated by the end of 2009.

In 2006, the two companies inked a production-sharing agreement for developing the Sulige natural gas field, which covers 2,390 square meters in Inner Mongolia. 

The largest mono-block gasfield has geological reserves of 533.68 billion cubic meters and daily output of more than 100 million cubic meters.

In addition, Total SA and CNPC are currently in talks with Venezuela government for a 20-year agreement for sending 200,000 barrels a day of Venezuelan oil to China that may start from 2013.