Edited Press Release
PARIS -(Dow Jones)- French oil giant Total (TOT) said Monday it has signed a Memorandum of Understanding, or MOU, with one of China's major oil & gas companies China National Offshore Oil Corporation, or CNOOC.
CNOOC Group President, Fu Chengyu, and Total Chief Executive Officer, Christophe de Margerie, signed the MOU on behalf of the two companies respectively.
The aim of the two companies is to enhance wide-ranging cooperation in the areas of upstream, downstream and in the field of new energies.
As a first concrete application of the MOU, Total Gas and Power Limited, or TGP, and CNOOC Corp. signed a Heads of Agreement for the sale of Liquefied Natural Gas by Total to CNOOC.
Under the terms of this agreement, up to one million tons of Liquefied Natural Gas (Australia:LNG) , or LNG, will be delivered annually to the Chinese oil group starting in 2010. The gas will be sourced from Total's global LNG portfolio, based on its participation in over 10 liquefaction projects worldwide, and on TGP's trading activities.
The MOU will be one of the foundations for Total and CNOOC to explore further cooperation, in line with China's priorities of energy security and sustainable development, by providing increased access to clean sources of energy, also a priority for Total.
The Heads of Agreement illustrates the confidence both parties have in the future of the Chinese natural gas industry. LNG imports will be decisive to secure its rapid growth, particularly in the coastal areas of China.
Company Web site: www.total.com
(END) Dow Jones Newswires 06-16-08 0603 Copyright (c) 2008 Dow Jones & Company, Inc.