BP to sign huge LNG deal with CNOOC

BP will sign a long-term LNG supply deal with Chinese company CNOOC in London today, according to BP chief executive Bob Dudley.

The LNG deal, worth approximately US$ 20 billion, will last for a period of 20 years. The deal will be signed in front of Prime Minister David Cameron and Premier Li Kequiang, during the Chinese leader’s visit to Britain.

“BP will be signing an agreement today in front of the Chinese Premier and David Cameron in agreement with CNOOC,” Dudley told reporters at the World Petroleum Congress in Moscow, Russia.

“The project has a value over the term of the contract of around US$ 20 billion. It’s a 20-year supply agreement of LNG to CNOOC to take it into southeast China. It is a big deal, a fair price for them, a fair price for us […] and a good bridge between the UK and China in terms of trade.”

British media has also reported that Royal Dutch Shell will today sign a deal with CNOOC.

Edited from various sources by Katie Woodward

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