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CNOOC opens Tangguh door to Talisman



By Upstream staff 

China National Offshore Oil Corporation (CNOOC) said it had reached a deal with Canada's Talisman Energy over its disputed stake in the $6.5 billion Tangguh liquefied natural gas project in West Papua, Indonesia.

CNOOC said Talisman would pay $212.5 million for a 3.06% working interest in the project. It said the stake would be held in an indirect subsidiary of CNOOC.

The Tangguh project will source natural gas from two offshore gas wells and will eventually produce up to 7.6 million tonnes of LNG per year. First production is expected towards the end of this year.

Talisman was earlier reported to have sought a 44% slice in the project, through its Fortuna Resource unit, of CNOOC’s 17% interest in Tangguh, which will supply CNOOC’s Fujian LNG terminal.

However, CNOOC has claimed that the Calgary-based company has a right to no more than a 5.4% stake in the project.


Monday, 28 January, 2008, 01:05 GMT  | last updated: Monday, 28 January, 2008, 01:05 GMT

Smoother sailing?: China's CNOOC said it had reached an agreement with Talisman Energy over the Tangguh LNG project
 

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