CNOOC and Iran sign US$16 BLN gas deal.(NEWSDESK: Agreement)(China National Offshore Oil Corp.)(Brief article)

China Chemical Reporter, January, 2007

China National Offshore Oil Corporation (CNOOC, HK: 0883), the largest offshore oil producer in China, and Iranian Government have signed a Memorandum of Understanding (MOU), in an initial deal valued at US$16 billion natural gas, China Securities Journal reported on December 20th, 2006.

Under the MOU, CNOOC will develop the North Pars gas field in Iran, which is estimated to have natural gas reserves of 2.265 trillion cubic meters. The gas output in this field would achieve 12 million cubic meters per day.

The project will have an investment of approximately US$16 billion, of which US$11 billion will be spent on the downstream, that is to say, on the construction and production of LNG project, and the rest on the upstream segment. The project could...

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