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China wins first Aussie oil acreage


THE aggressive Chinese government-controlled oil company CNOOC has been awarded its first exploration acreage in Australian waters.

CNOOC, the China National Offshore Oil Corporation, is China's biggest offshore oil producer and already holds a small stake in North West Shelf gas project reserves backing the $25 billion contract to supply Guangdong province with LNG for 25 years.

Federal Resources Minister Ian Macfarlane gave details of the CNOOC award yesterday when announcing 11 new offshore petroleum exploration programs worth more than $800 million. It is a partner in three other exploration permits.

Twenty one bids were received for the permit areas offered.

CNOOC was awarded permit WO6-1 in the Bonaparte Basin to the west of Conoco Phillips' producing Bayu-Undan gas and condensate field with a guaranteed initial work program of 400sqkm of 3-D seismic and geological studies and five exploration wells at an estimated cost of $81.3 million.

CNOOC also proposed a secondary work program worth $80.8 million -- depending on the outcome of its first three years of activities.

Mr Macfarlane's statement also covered the awarding of WO6-9 to Woodside, which is thought to be highly prospective as a potential new source of gas for the $12 billion Pluto LNG development.

Woodside said it had bid a work program worth $196 million, which represents about a quarter of the commitment announced yesterday by Mr Macfarlane.

Other winners include India's Reliance Industries, which is already active in the Timor Sea, and France's Total, which is already partnering INPEX in a proposed LNG project in the Browse Basin north of Broome.

Pledged work programs totalled $224 million in two permits in the Bonaparte Basin west of Darwin.

Hess of the US and Santos also won offshore licences in the bidding auction.

Hess already holds the record for an Australian offshore permit, bidding $500.9 million in the 2006 acreage release for a block on the Exmouth Plateau close to the Janz gas discovery.

Santos will undertake a program in the Sorell Basin off Tasmania's west coast.

 

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