This article is 21 years old. Images might not display.
During Chinese President Hu Jintao's visit to Australia last October, the venture secured a NWS style interest agreement with China National Offshore Oil Corporation (CNOOC) on holding shares of upper-reach development and purchasing its LNG product in the future.
Last year the group signed a preliminary agreement to sell between 80 million and 100 million metric tons of LNG from Gorgon to China over 25 years starting in 2008. The Woodside Petroleum-led North West Shelf venture has a $25 billion agreement to export LNG to the terminal being built in Guangdong.
The Gorgon venture, which includes ChevronTexaco, Royal Dutch/Shell Group and Exxon Mobil Corp., is located in the northwest of Australia and holds the largest gas field discovered in the country.
Now the next step for the partners is to negotiate enough foundation contracts for its estimated 12.9 trillion cubic feet of gas before development can begin.
