HONG KONG, Jan. 27 /Xinhua-PRNewswire-FirstCall/ -- CNOOC Limited (NYSE: CEO; SEHK: 883, "the Company") announced today, it has reached agreement with Talisman Energy Inc. to sell a 3.06% working interest in the Tangguh LNG Project with a consideration of US$ 212.5 million. The transaction has been completed through the equity transfer of an indirect subsidiary of CNOOC Limited and became effective on 1 January 2008 (Hong Kong time).
The Tangguh LNG Project, located in West Papua, Indonesia, consists of a number of offshore gas wells, production facilities, pipelines and LNG plant facilities with a nameplate capacity of 7.6 million tons per year. The Project comprises three PSC areas: the Berau PSC, the Muturi PSC and the Wiriagar PSC. First LNG is expected in late 2008.
Before the transaction, CNOOC Ltd. owned 16.96% of working interests in Tangguh project.
"Such an agreement between both companies is consistent with the portfolio management strategy of CNOOC Ltd. so as to maximize shareholders' value", Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company commented, "With significant presence remained in Tangguh project, we welcome Talisman as a new partner to further develop the gas business, which I believe, will bring generous return to the Company and the shareholders as a whole."
Tangguh Fast Facts
Field Characteristics
Location Bintuni Bay, Papua
Production sharing contracts Berau, Wiriagar and Muturi
Date discovered 1994
Water depth of the platform Up to 60 meters
Proven reserves 14.4 tcf gas
Development components Two wellhead platforms offshore
exporting unprocessed gas via 24
inch diameter pipelines running
22 km to LNG plant
onshore
Development consent March 2005
First LNG Late 2008
Max. design capacity for LNG plant
(two trains) 7.6 mmtpa
Partners BP Berau Ltd 37.16%
MI Berau B.V 16.30%
CNOOC Ltd. 13.90%
Nippon Oil
Exploration
(Berau), 12.23%
KG Berau/
KG Wiriagar 10.00%
LNG Japan
Corporation 7.35%
Talisman 3.06%
Estimated development cost $US 5 billion
Offshore Gas Production Facilities
Lead contractor PT Saipem Indonesia
Platforms Two, 6 legged, normally unattended
wellhead platforms controlled from
shore
Well slots 16 per platform
Weight Deck : Approx. 1800 MT, Jacket :
2100 MT
Dimensions (height and width at Jackets: approx. 67m(h)x20mx30m (w).
base) Decks: Approx. 30m x 35 m (w)
Where built PT Guna Nusa fabrication yard,
Cilegon
Date installed 1Q 2007
Pipelines Two, 24 inch pipelines, running
22km to shore. To be installed in
4Q-2006
Onshore LNG Facilities
EPC contractor Consortium KJP (Kellogg Brown &Root,
JGC and PT Pertafenikki)
Processing equipment Two train 3.8 mmtpa capacity each to
liquefy gas into LNG
LNG storage tanks Two insulated tanks capable of
storing 170,000 cubic metre each
Export LNG export jetty designed for
140,000 ton LNG carriers
Notes to Editors:
More information about the Company is available at http://www.cnoocltd.com .
This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words "believe," "intend," "expect," "anticipate," "project," "estimate," "plan," "predict" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by us that we believe are reasonable under the circumstances. However, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance and financial condition to differ materially from our expectations. For a description of these and other risks and uncertainties, please see the documents we file from time to time with the United States Securities and Exchange Commission, including our 2006 Annual Report on Form 20-F filed on June 29, 2007.
For further enquiries, please contact:
Mr. Xiao Zongwei
General Manager of Investor Relations Department
CNOOC Limited
Tel: +86-10-8452-1646
Fax: +86-10-8452-1441
Email: xiaozw@cnooc.com.cn
Ms. Carol Wong
Account Manager
Ketchum Hong Kong
Tel: +852-3141-8098
Fax: +852-2510-8199
Email: carol.wong@knprhk.com
