CNOOC, Shell pen cooperation deal

On June 17th, China National Offshore Oil Corporation (CNOOC) and Shell announced that they have signed a Global Strategic Alliance Agreement that reconfirms both parties’ commitment to the existing strategic partnership in China and around the world.

Under the Agreement, the companies also commit to exploring potential cooperation opportunities in upstream, midstream and downstream. The Agreement was signed by CNOOC Chairman Wang Yilin and Shell Chairman Jorma Ollila.

Chinese Premier Li Keqiang, who is on an official state visit to London, and British Prime Minister David Cameron witnessed the signing of the Agreement. CNOOC Chairman Wang Yilin said: “We are delighted to see our strategic partnership with Shell taking a step further under the Agreement. It is another milestone for our already fruitful, mutual-beneficial cooperation. I look forward to deeper and more extensive cooperation with Shell.”

CNOOC and Shell have enjoyed an excellent partnership in and outside China in both upstream and downstream projects including offshore Yinggehai off Hainan Island and a successful petrochemicals joint venture in Huizhou, Guangdong province. The parties are also working together in liquefied natural gas (LNG) projects and upstream deepwater projects including in Gabon and Brazil among others.

Ben van Beurden, Shell’s CEO, said: “We are very happy to reconfirm our commitment to the Shell-CNOOC strategic partnership that has borne many fruits. We are committed to growing business together with CNOOC and other Chinese partners and cooperating with them internationally to bring more clean energy to China.” 

Also, China National Offshore Oil Company (CNOOC) and BP yesterday signed an agreement worth £12 billion on the supply of liquefied natural gas. The deal will see BP supply CNOOC with 1.5 million tonnes of gas per year over the next 20 years, starting in 2019.