(The following is a reformatted version of a press release
issued by BP Press Office and received via electronic mail. The
release was confirmed by the sender.)
17 June, 2014
BP and CNOOC sign 20-year LNG deal
BP and the China National Offshore Oil Corporation (CNOOC) today
announced a heads of agreement for the supply of up to 1.5
million tonnes of liquefied natural gas (LNG) per year over 20
years starting in 2019. The agreement was signed in London by BP
Executive Vice President, Dev Sanyal and CNOOC Chairman, Wang
Yilin, in the presence of UK Prime Minister David Cameron and
Chinese Premier, Li Keqiang.
Bob Dudley, BP Group Chief Executive said: “This is a
significant deal for BP and China but it also marks a step up in
global connectivity in the gas market. This is important for all
countries and regions looking at the diversity of energy supply
and energy security - it gives BP greater flexibility to respond
to the changing energy demands from Europe, Asia and other
“We are pleased to support China’s commitment to improving its
air quality. This agreement is the first long-term LNG supply
deal wih China where BP is the sole supplier and it should play
a crucial role in enhancing China’s energy diversification and
supporting its economic growth.”
A full commercial contract is expected to be agreed in mid-2014.
BP would expect to supply LNG from its global portfolio, using
its own LNG tanker fleet and chartered ships delivering gas to a
number of terminals in China.
Notes to Editors
- 1.5 million tonnes of LNG is approx 72 billion cu ft of
- CNOOC is a pioneer of China’s LNG industry and the third
largest LNG importer in the world with 13 million tons of LNG
imported in 2013. Currently, CNOOC operates 6 LNG receiving
terminals in Guangdong, Fujian, Zhejiang, Shanghai and Tianjin
with further terminals under construction.
- BP is active in many of the major LNG producing regions as
well as in the main LNG markets. It is involved in LNG projects
in Australia, UAE, Indonesia, Egypt, Trinidad and Angola.
This press release contains certain forward-looking statements
concerning BP’s expectations regarding a heads of agreement
signed between BP and the China National Offshore Oil
Corporation for the supply of LNG, including expectations
regarding BP’s role in enhancing China’s energy
diversification, the expected timing of the agreement of the
full commercial contract and BP’s expectations regarding the
source of supply. By their nature, forward-looking statements
involve risk and uncertainty because they relate to events and
depend on circumstances that will or may occur in the future.
Actual results may differ from those expressed in such
statements, depending on a variety of factors including changes
in public expectations and other changes to business conditions;
the receipt of relevant third-party and or regulatory approvals;
future levels of industry product supply; demand and pricing;
economic and financial conditions generally or in various
countries and regions; the timing and nature of maintenance
outages; operational problems; political stability and economic
growth in relevant areas of the world; changes in laws and
governmental regulations; regulatory or legal actions; the
actions of competitors, trading partners, creditors, rating
agencies and others; natural disasters and adverse weather
conditions; wars and acts of terrorism, cyber-attacks or
sabotage; and other factors discussed under “Risk factors” in
our Annual Report and Form 20-F 2013 as filed with the US
Securities and Exchange Commission.
BP Press Office, London +44 (0)207 496 4076, email@example.com
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