(Hong Kong, Jan 28 2008) - 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."
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Location |
Bintuni Bay, Papua |
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Production sharing contracts |
Berau, Wiriagar and Muturi |
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Date discovered |
1994 |
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Water depth of the platform |
Up to 60 meters |
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Provenreserves |
14.4 tcf gas |
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Development components |
Two wellhead platforms offshore exporting unprocessed gas via 24 inch diameter pipelines running 22 km to LNG plant onshore |
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Development consent |
March 2005 |
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First LNG |
Late 2008 |
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Max. design capacity for LNG plant (two trains) |
7.6 mmtpa |
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Partners |
BP Berau Ltd 37.16%
MI Berau B.V 16.30%
CNOOC Ltd. 13.90%
Nippon Oil Exploration (Berau), Ltd 12.23%
KG Berau/KG Wiriagar 10.00%
LNG Japan Corporation 7.35%
Talisman 3.06% |
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Estimated development cost |
$US 5 billion |
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Lead contractor |
PT Saipem Indonesia |
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Platforms |
Two, 6 legged, normally unattended wellhead platforms controlled from shore |
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Well slots |
16 per platform |
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Weight |
Deck : Approx. 1800 MT, Jacket : 2100 MT |
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Dimensions (height and width at base) |
Jackets: approx. 67m (h) x 20mx30m (w).
Decks : Approx. 30m x 35 m (w) |
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Where built |
PT Guna Nusa fabrication yard, Cilegon |
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Date installed |
1Q 2007 |
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Pipelines |
Two, 24 inch pipelines, running 22 km to shore. To be installed in 4Q-2006 |
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EPCcontractor |
Consortium KJP (Kellogg Brown &Root, JGC and PT Pertafenikki) |
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Processing equipment |
Two train 3.8 mmtpa capacity each to liquefy gas into LNG |
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LNG storage tanks |
Two insulated tanks capable of storing 170,000 m3each |
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Export |
LNG export jetty designed for 140,000 ton LNG carriers |
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