The move is part of the development of a new joint venture to supply China's Guangdong LNG project for 25 years. It will be called the China LNG joint venture with CNOOC holding a 25% share and each of the existing NWS Venture participants taking 12.5%.
The North West Shelf Venture and CNOOC have also signed agreements that give CNOOC rights to use NWS Venture infrastructure to produce and process gas and associated liquids from its acquired gas resources. CNOOC will pay a tariff to the NWS Venture participants for these rights.
The agreement finalises terms agreed with CNOOC in October 2002.
The six equal participants in the North West Shelf Venture are: Woodside Energy Ltd. (operator); BHP Billiton (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; ChevronTexaco Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited.