(By Balachander) ConocoPhillips (NYSE: COP) has signed agreements with PetroChina Company Ltd. (NYSE: PTR) under which the Chinese company will acquire an interest in two Western Australia exploration assets.
Under the agreements, PetroChina will acquire working interest in the two Australian projects; specifically 20 percent of Poseidon in the Browse Basin and 29 percent of Goldwyer in the Canning Basin. PetroChina will be a new joint venture participant in ConocoPhillips' Australian offshore and onshore exploration projects.
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PetroChina will also establish a Joint Study Agreement (JSA) to identify unconventional resource reserves in Sichuan Basin in China. The companies will study the potential for unconventional resource development in the 500,000 acre Neijiang-Dazu Shale Block in the Sichuan Basin.
"If technically and commercially viable, the companies will advance development under a production sharing contract, which would be agreed upon during the study period," Houston, Texas-based ConocoPhillips said.
"We believe that the cooperation between the two companies will form an important driver in promoting clean energy supply to China and contributing to the country's transition into a clean energy economy," ConocoPhillips added.
As of Dec. 31, 2012, ConocoPhillips' production from continuing operations averaged 1,527 MBOED and proved reserves were 8.6 billion BOE.
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COP shares fell 1.04 percent to trade at $57.99 on Wednesday, while ADRs of PTR gained 0.76 percent to trade at $137.03.