CNOOC Signs MOU with Altona Resources Plc     

On August 19th, CNOOC (Beijing) Energy Investment Co., Ltd., a subsidiary of China National Offshore Oil Corporation (CNOOC), signed an MOU with Altona Resources Plc, the AIM listed Australian based energy company. The MOU provides the basis for CNOOC Energy and Altona to build a long-term co-operative relationship towards the development of Altona's 10 million barrel per year coal-to-liquids (CTL) and 560 MW power co-generation Arckaringa Project in South Australia. The total investment involved is expected to reach US$3 billion, which will be the biggest onshore new energy project CNOOC invests abroad.
    Altona Chairman Chris Lambert said, "We have always recognized that Altona would need a partner of major stature, given the size of the Arckaringa Project, and we are therefore delighted to have the support and interest of CNOOC Energy. With their immense resources and capabilities, CNOOC Energy is an ideal partner for Altona to work closely with in evaluating technology, off-take, financing and construction opportunities. The development of Arckaringa would deliver tremendous benefits to South Australia in providing a major new source of base load power and diesel to a State which has a significant looming power deficiency and currently imports all of its distillate requirements."
    Altona holds a 100% interest in three exploration licenses covering 2 500 square kilometers in the northern portion, of the Permian Arckaringa Basin in South Australia and including three coal deposits - Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362), totaling a reserve of 7.5 billion tons.
    Coal resource Altona holds may be the main reason interesting CNOOC, an analyst commented. No comments from CNOOC.  
    There is a report that BP may join in the project.