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      CNOOC signs $1.56b coalbed deal

      2012-08-07 09:47 China Daily     Web Editor: Liu Xian comment

      CNOOC Ltd, China's largest offshore oil producer, has signed five-year, 9.93 billion yuan ($1.56 billion) joint exploration deal with China United Coalbed Methane Corporation to search for coalbed methane.

      The move aims at boosting the CNOOC's clean energy expansion and developing the unconventional energy as another important fuel source, officials said.

      Under the agreement, exploration work will be held in provinces including Shanxi, Shaanxi, Anhui, Shandong, Yunnan, Hebei, Hubei, Henan and Ningxia Hui autonomous region with a total area of 10,866 square kilometers.

      Future coalbed methane production from the project would be shared between CNOOC and China United.

      CNOOC will be responsible for 70 percent of the exploration costs if any coalbed methane fields are discovered and China United will take up the rest of the costs.

      China United is half owned by CNOOC's parent, China National Offshore Oil Corporation.

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