Chinese state-owned producer CNOOC has received government clearance to take majority control of the Lishui natural gas project in the East China Sea, replacing Canadian listed independent Primeline Energy that has been developing the venture since 1994.
The partners are still to finalise Lishui's start-up date or likely production volumes, although Primeline has estimated recoverable probable gas reserves at 119bn ft (3.3bn m ). It envisages piping gas via a 125km pipeline to near Wenzhou in Zhejiang province.
CNOOC's exclusive role in China's offshore allows it the right to farm in for a 51pc stake if a joint venture proves viable. This is a deterrent to foreign companies that bear the brunt of exploration expenses.
But the best Chinese upstream prospects are largely off limits to new foreign entrants, with CNOOC reluctant to offer its partners acreage in China's highly prospective but untapped deep waters. Recent releases of offshore blocks have been limited to the country's shallow waters.
The partners are still to finalise Lishui's start-up date or likely production volumes, although Primeline has estimated recoverable probable gas reserves at 119bn ft (3.3bn m ). It envisages piping gas via a 125km pipeline to near Wenzhou in Zhejiang province.
CNOOC's exclusive role in China's offshore allows it the right to farm in for a 51pc stake if a joint venture proves viable. This is a deterrent to foreign companies that bear the brunt of exploration expenses.
But the best Chinese upstream prospects are largely off limits to new foreign entrants, with CNOOC reluctant to offer its partners acreage in China's highly prospective but untapped deep waters. Recent releases of offshore blocks have been limited to the country's shallow waters.
