) has entered into a set of agreements with China's state-owned
PetroChina Company Ltd.
). The agreements entail PetroChina to acquire stakes in 2
exploration assets in Western Australia. The companies also
intend to jointly identify unconventional resource reserves in
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In the first set of accords, ConocoPhillips will offload a 20%
working interest in the Poseidon offshore discovery in the Browse
Basin. The second set involves the divestment of a 29% working
interest in the Goldwyer Shale, onshore Canning Basin, to
The closure of the deals is subject to the approval by the
associates of ConocoPhillips. Upon successful completion,
ConocoPhillips will operate the Greater Poseidon development,
with a 40% stake and Melbourne-based Karoon Gas Australia holds
the remaining 40% interest. This project includes blocks WA-315-P
In the Goldwyer shale, Perth-based New Standard Energy Ltd
operates the license with a 25% stake. Following the stake sale,
ConocoPhillips will retain a 46% interest.
The third deal allows ConocoPhillips as well as PetroChina to
study the potential for unconventional resource development in
the Neijiang-Dazu block in China's Sichuan basin. The area covers
approximately 500,000 acres. Following evaluation of the
technical as well as commercial feasibility of the resource, both
the energy giants aim to move into the development phase under a
In recent times, Chinese energy behemoths are increasingly
investing overseas to meet the growing domestic energy demand.
PetroChina recently acquired
BHP Billiton Limited
) interests in the West Browse and East Browse LNG projects for
ConocoPhillips remains on track with major growth projects that
are expected to offset production declines and diversify its
asset portfolio. Furthermore, strong proceeds from asset sales,
disposal of low-profit generating properties and cancellation of
potentially less profitable projects add to the company's growth
Recently, the oil major received the consent from the State
Oceanic Administration (SOA) to start oil production at the
Penglai 19-3 oilfield, off China's Northeastern coast.
ConocoPhillips retains a Zacks Rank #3 (short-term Hold rating),
while PetroChina is supported by a Zacks Rank #5 (Strong Sell).
However, there is another stock in the oil and gas industry,
), which holds a Zacks Rank #2 (Buy) and appears more