Shell signs strategic alliance with CNOOC

15-Nov-2000

Shell Overseas Investments BV, a wholly owned member of the Royal Dutch/Shell Group of Companies (Shell), yesterday signed a Strategic Alliance Agreement with the China National Offshore Oil Corporation (CNOOC) to jointly develop a range of opportunities in oil and gas exploration and production and gas marketing. Shell has also signed a memorandum of understanding to purchase 20 per cent of the Initial Public Offering (IPO) of CNOOC Ltd. up to a maximum of US $300 million. The Strategic Alliance Agreement with CNOOC covers exploration and the joint development and production of some oil and gas fields in Bohai Bay and the exploration, development and production of gas reserves in part of the Xihu Trough in the East China Sea. In addition, the partners aim to jointly develop the marketing of gas to major power, municipal and industrial customers on China?s East Coast. Under the alliance, Shell and CNOOC have agreed to jointly conduct feasibility studies for a gas pipeline linking major cities on the East Coast. Shell and CNOOC already have a significant partnership in the South China Sea with Phillips, producing from two offshore oil fields. They are also partners in a major US $4 billion petrochemicals joint venture project in Huizhou, for which a joint venture contract was signed at the end of October. Chairman of the Shell Companies in North East Asia, Tan Ek Kia, said: ?CNOOC is one of China?s three major oil and gas companies with an important role to play in supplying China?s future energy needs and helping fuel its economic growth. We already have a significant partnership with CNOOC and this is an exciting opportunity to expand this cooperation in areas of mutual benefit that takes advantage of the strengths of both partners.?

https://www.chemeurope.com/en/news/350/shell-signs-strategic-alliance-with-cnooc.html