CNOOC in $1.6bn CBM deal

REUTERS

Eoin O'Cinneide

 03 August 2012 13:06 GMT

China’s CNOOC is making a big splash in the domestic unconventionals market as it hatches an agreement with China United Coalbed Methane (CUCBM).

Offshoot CNOOC China said it expects the tie-up, which is aimed at expanding its clean energy and onshore domestic exploration and production portfolios, to cost it over 9.93 billion Chinese yuan ($1.56 billion).

The partnership would work together to explore, develop, produce and sell coalbed methane and associated products in China, CNOOC said on Friday.

The 30-year contract will have an initial exploration period of five years, split into two phases of three years and two years.

The first phase of exploration is expected to set CNOOC China back 9.71 billion yuan with a further 220 million yuan incurred in…

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