Chevron: Relations CNOOC 'Normalizing'

Relations between Chevron and China's dominant offshore oil and gas producer CNOOC are 'normalizing' seven months after CNOOC bowed to U.S. political opposition and gave up its fight with Chevron to buy Unocal, as reported by Forbes. Chevron, the second-largest holder of oil and gas reserves in the east Asia-Pacific region after PetroChina, is looking to sell more gas to China as it develops its resources in Australia and Indonesia, the report in the Hong Kong paper said. CNOOC pulled its $18.5 billion bid for Unocal in August last year citing 'unprecedented political opposition' in the U.S. Chevron, which began doing business in China in the 1920s, has continuing partnerships with CNOOC in oil and gas production in offshore centres in China and Western Australia. Chevron had been in talks with CNOOC parent China National Offshore Oil Corp to sell gas from its 50 pct-held Gorgon project near Western Australia to the latter's planned liquefied natural gas (LNG) project in Zhejiang province. The parent tried to bargain for CNOOC a right to invest in the gas project, in exchange for a long-term gas off-take agreement. Two years of talks yielded no deal as China National Offshore insisted on buying gas at prices last seen four years ago. (Source: Forbes)