CNOOC Ltd, China's third-biggest oil company, said it met with Gorgon officials remains in Beijing on Wednesday and negotiations were continuing.

The contract is likely to be worth about about A$30 billion.

Gorgon and CNOOC, which reached an initial accord in October 2003 for a gas sale, said they are still negotiating terms, three months after an exclusivity period for that agreement expired.

The Gorgon partners are Chevron (operator) 50%, Shell 25% and ExxonMobil 25%.