China: CNOOC, CUCBM Enter CBM Deal

CNOOC China entered into a deal with China United Coalbed Methane Corporation Limited (CUCBM) for exploration, development, production and sale of Coalbed Methane (CBM) and CBM products.

The term of the Agreement commences on the Effective Date and expires on the later of 30 years from the Effective Date, and the end of the production period of the last CBM Field in the Contract Areas, unless otherwise agreed by CNOOC China and CUCBM, CNOOC said in a statement.

The Agreement will cover three phases, namely exploration, development and production periods. It is expected that the exploration period will be the initial five years from the Effective Date, which is further divided into two stages with the initial three years as the first stage and the following two years as the second stage. The actual duration of exploration period of particular field within the Contract Areas will vary depending on the progress of exploration in such area, the company added.

[mappress]
LNG World News Staff, August 06, 2012