ConocoPhillips Announces Three Agreements with PetroChina
HOUSTON -- February 20, 2013
ConocoPhillips (NYSE: COP) today announced that it has entered into a set of
agreements with PetroChina Company Ltd. (PetroChina) whereby PetroChina will
acquire an interest in two Western Australia exploration assets and establish
a Joint Study Agreement (JSA) for unconventional resource development in
Sichuan Basin in China.
Under these agreements, which still require government and partner approvals,
PetroChina will acquire a working interest in the Poseidon offshore discovery
in the Browse Basin, and in the Goldwyer Shale in the onshore Canning Basin.
In addition, ConocoPhillips will enter into a Joint Study Agreement to
identify unconventional resource reserves in the Neijiang-Dazu Block in
China’s Sichuan Basin.
“ConocoPhillips is pleased that PetroChina has recognized the significant
resource potential and value of the Australian opportunities. Likewise,
ConocoPhillips recognizes the Sichuan Basin as having some of the most
prospective marine shales in China and looks forward to working with one of
the world’s leading energy companies,” said Don Wallette, executive vice
president, Commercial, Business Development and Corporate Planning,
ConocoPhillips. “The signing of these three agreements marks a significant
step toward increased global collaboration between our companies.”
Under the terms of the agreement with ConocoPhillips, PetroChina will acquire
working interest in the two Australian projects; specifically 20 percent of
Poseidon in the Browse Basin and 29 percent of Goldwyer in the Canning Basin.
Under the JSA, ConocoPhillips and PetroChina will study the potential for
unconventional resource development in the approximately 500,000 acre
Neijiang-Dazu Shale Block in the Sichuan Basin. The joint study will be an
important step in evaluating the potential for unconventional resource
exploration in the area. If technically and commercially viable, the companies
will advance development under a production sharing contract, which would be
agreed upon during the study period.
Todd Creeger, President, ConocoPhillips Australia-West said the agreement with
PetroChina was significant for the company’s growth plans in both China and
Australia. “We welcome PetroChina as a new joint venture participant in our
Australian offshore and onshore exploration projects.We look forward to
jointly delivering two successful assets,” Creeger said.
Jim Taylor, President, ConocoPhillips China stated, “This is a great
opportunity for ConocoPhillips to cooperate with PetroChina in order to study
the potential for unconventional resource development here in China.We
believe that the cooperation between the two companies will form an important
driver in promoting clean energy supply to China and contributing to the
country’s transition into a clean energy economy.”
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Headquartered in Houston, Texas, ConocoPhillips had operations and activities
in 30 countries, $58 billion in annual revenue, $117 billion of total assets
and approximately 16,900 employees as of Dec. 31, 2012. Production from
continuing operations averaged 1,527 MBOED in 2012 and proved reserves were
8.6 billion BOE as of Dec. 31, 2012. For more information, go to
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John McLemore (media)
Aftab Ahmed (media)
Vladimir R. dela Cruz (investors)
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