State-run China National Offshore Oil Corporation (CNOOC) has received approval from one of three Chinese government departments needed to complete its farm-in agreement for five exploration permits held by Australia s Exoma Energy in the Galilee basin, Queensland.
Exoma said the Chinese Government Authority had approved the deal but it still needs the nod from the Ministry of Commerce of the Republic of China and the State Administration of Foreign Exchange before the deal can be finalised.
Under the agreement CNOOC will earn a 50% stake in the ATP 991, 996, 999, 1005 and 1008 permits by contributing A$50 million (US$50.6 million) towards exploration costs.
Exoma has also granted CNOOC an option to acquire 86.6 million ordinary shares in the company at A$0.315 per share.
The Queensland government gave its approval for the deal to proceed earlier this month.
