Page 20 - AsianOil Week 41

AsianOil NEWS IN BRIEF AsianOil

EAST ASIA

CNOOC Ltd updates non-
compete amendments

On 13 October 2020, CNOOC Ltd and
CNOOC entered into the Supplemental
Agreement to amend certain terms of the
Existing Non-Compete Undertaking, having
taken into account of the necessity to further
clarify and amend the relevant terms of the
Existing Non-Compete Undertaking due to
changes in relevant laws and regulations and
the external environment.
The Board considers that the
Supplemental Agreement and the
amendments to the Existing Non-Compete
Undertaking as contemplated thereunder
are on normal commercial terms, fair and
reasonable and are in the interests of the
a 60% participating interest, while PCOVL Agreement on December 5, 2018, and CNOOC Ltd and the shareholders as a
holds 10% and Makarim Gas Development have been developing an Interim Offshore whole.
LLC holds the remaining 30%. LNG Terminal in Batangas City, Southern As CNOOC indirectly owns an aggregate
Petronas President and Group Chief Luzon Island. With the JCA, the parties will of approximately 64.44% of all the shares
Executive Officer Tengku Muhammad transition to the construction of a floating of CNOOC Ltd in issue as at the date of
Taufik said: “Petronas is proud to be storage and regasification unit, with the aim of this announcement, the Supplemental
part of the Block 61 consortium that introducing LNG to the Philippines as early as Agreement and the amendments to the
has successfully delivered the start-up in the second half of 2022. Existing Non-Compete Undertaking as
of Ghazeer ahead of schedule and most Under the terms of the JCA, the two contemplated thereunder are subject to the
importantly, safely, amid challenging companies will jointly construct, operate approval of the Independent Shareholders
market conditions. This shared success is and maintain the Interim Offshore LNG under the Listing Rules. In view of the
a result of a strategic collaboration among Terminal which includes converting the equity interest held directly and indirectly
the consortium partners, contractors and existing jetty into a multi-purpose jetty by CNOOC in OOGC and CNOOC BVI,
the Government of the Sultanate of Oman. and constructing an adjunct onshore OOGC, CNOOC BVI and their respective
We look forward to strengthening this gas receiving facility. Tokyo Gas will Associates will abstain from voting in
partnership as we progress together towards take a 20% participating interest in the relation to the resolution approving
delivering clean, safe and reliable energy construction and operation of the project. the Supplemental Agreement and the
supply to the Sultanate of Oman, in line The Department of Energy of the Republic amendments to the Existing Non-Compete
with the country’s 2040 vision.” of the Philippines granted a permit to Undertaking as contemplated thereunder
Block 61, being one of the Middle East’s construct the Interim Offshore LNG at the EGM.
largest tight gas accumulations, has the Terminal on September 23, 2020. Pursuant to the Supplemental
capacity to deliver approximately 35% of First Gen is a power generation company Agreement, CNOOC undertakes to
Oman’s total gas demand with an estimated of the Lopez Group, which is one of the CNOOC Ltd that, unless otherwise
10.5 trillion cubic feet of recoverable gas largest conglomerates in the Philippines, specified, (i) the Group is the only vehicle
resources. Development of the block and is the largest natural gas consumer in through which CNOOC will engage in
is an important achievement and a key the Philippines with approximately 60% oil and gas exploration, development,
contributor towards Oman’s 2040 vision of the natural gas-fired power generation production and sales businesses in and
in terms of supporting the growth of capacity in the country. outside the PRC; and (ii) CNOOC will
local industries as well as diversifying its Tokyo Gas stated in its Group not, and will procure all members of
economy. Management Vision “Compass 2030” the CNOOC Group not to, directly or
PETRONAS, October 12, 2020 that it intends to increase profits overseas indirectly, engage in oil and gas exploration,
approximately threefold by 2030 through development, production and sales
Tokyo Gas, First Gen to build business expansion outside Japan. businesses in or outside the PRC.
CNOOC Ltd may, upon the approval
Taking advantage of the technology and
offshore LNG terminal in know-how related to our comprehensive of the INEDs, waive CNOOC from the
energy business, we will contribute to
abovementioned noncompete undertaking
Philippines energy solutions for customers and to the in writing for new businesses if the INEDs
determine that participating in or engaging
construction of energy infrastructure, while
On October 6, 2020, Tokyo Gas signed a Joint also taking on the challenge of developing in such businesses may expose the Group to
Cooperation Agreement (JCA) with First Gen value chains in other countries through significant legal risks due to applicable laws
of the Republic of the Philippines. The two alliances with local energy companies. and regulations that may lead to (including
companies entered into a Joint Development TOKYO GAS, October 7, 2020 but not limited to) potential legal penalties,

P20 www. NEWSBASE .com Week 41 15•October•2020