PetroChina to Buy Australian Assets From ConocoPhillips

PetroChina Co. (857), China’s biggest oil and gas producer, will buy stakes in two Western Australia exploration assets from ConocoPhillips. (COP) The two companies will also jointly study shale-gas development in China.

PetroChina will purchase a 20 percent stake in the Poseidon offshore discovery in Australia’s Browse Basin and a 29 percent interest in the Goldwyer Shale onshore project in Canning Basin, the Beijing-based company said in an e-mailed statement yesterday. The company didn’t disclose financial terms.

The agreements are “a significant step toward increased global collaboration” with ConocoPhillips, PetroChina said in the statement. “For PetroChina, this is also an important movement to continue improving the offshore LNG and onshore unconventional oil and gas developments in West Australia.”

The deal comes after PetroChina agreed to pay BHP Billiton Ltd. (BHP) $1.63 billion for its holding in Woodside Petroleum Ltd. (WPL)’s proposed Browse liquefied natural gas project in Western Australia in December. The Chinese state-owned company has said it wants half of its oil and gas output to come from overseas by the end of the decade.

PetroChina and ConocoPhillips will jointly study unconventional gas resources in the Neijiang-Dazu Block in China’s Sichuan Basin, according to yesterday’s statement.

To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

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