CNOOC acquires $275 million stake in Tangguh

CNOOC has acquired a 12.5 per cent share of Indonesia’s Tangguh liquefied natural gas (LNG) project from BP for $275 million.

This acquisition follows the signing last September of a 25-year agreement between CNOOC and BPMIGAS – the implementing agency for the upstream oil and gas sector in Indonesia – under which the BP-operated Tangguh project will supply LNG to China’s Fujian LNG terminal.

Also signed was an agreement in principle for CNOOC’s participation in Tangguh.

Tangguh has proven reserves certified at 14.4 trillion cubic feet. The Tangguh reserves are located on three Production Sharing Contracts (PSCs) with BP retaining a controlling interest in two of the three PSCs.

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