CNOOC receives 1st LNG delivery from Qatar

Oct. 22, 2009 (China Knowledge) - China National Offshore Oil Corp, the parent of CNOOC Ltd<0883><CEO>, on Oct. 18 received the first shipment of liquid natural gas, totaling 216,000 cubic meters, from Qatar at Dapeng LNG terminal in Shenzhen, Guangdong Province, sources reported.

According to the contract signed with Qatargas, CNOOC will receive 2 million metric tons of LNG every year for 25 years.

The price for the LNG from Qatar is estimated to be RMB 3 per cu m, double the price of LNG from Australia. CNOOC has inked intention agreements instead of formal contracts with many downstream LNG buyers but said that it faces no sales pressure.

Reportedly, CNOOC is in talks with StateoilHydro, a Norwegian oil firm, to purchase a stake in the latter firm's oil assets in U.S. waters in the Gulf of Mexico. If the deal is done, CNOOC will be the first Chinese firm to develop an oil field in the region.