Crespo007.....I have posted this article from The Age as there is a paragraph which refers to details of the Sichuan Basin JV agreement between COP & PC being undisclosed.
Perhaps in that agreement there is a clause relating to finds GJV (and Browse for that matter) which will influence the financials of Sichuan Basin either in a positive, negative or neutrual way for COP.
Maybe COP agreed to put a conservative value on Goldwyer for now and have covered themselves for any upside in Goldwyer finds.
Source: www.theage.com.au/business/petrochina
PetroChina buys Conoco's WA gas stake Date: February 21 2013
Asia's largest oil producer, PetroChina, is to buy some of ConocoPhillips' stake in two Western Australia exploration assets.
PetroChina will acquire 20 per cent of Poseidon gas field in the Browse Basin offshore Western Australia and 29 per cent of onshore shale formation Goldwyer in the Canning Basin, also in WA.
According to Conoco's website, the company owns 60 per cent of some exploration permits in the Browse Basin. Karoon Gas holds the remaining interests.
The deal comes two months after PetroChina agreed to buy BHP Billiton's stake in the Woodside Petroleum-led Browse LNG project, estimated to cost $30 billion to build.
State-owned PetroChina has set aside $16 billion for overseas investment in 2013.
China's state-owned energy giants have been bidding aggressively for foreign oil and gas fields as Beijing looks to secure energy supplies to meet rising demand.
The country aims to double the share of gas in its overall energy mix to more than 8 per cent by 2015.
Under Wednesday's deal, ConocoPhillips and PetroChina will also study the potential for unconventional resource development in the 500,000 acre Neijiang-Dazu Shale formation in the Sichuan Basin in southwestern China.
Financial details of the deal were not disclosed.
Shares of Houston-based Conoco were down 1 per cent at $57.97 on the New York Stock Exchange on Wednesday.
NSE Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
