Delegation led by Wei Lieucheng CNOOC to Darwin

8 May 1998

In 'My Story' Chapter 14: Postscript - ALNG and a lost opportunity I detail the mishandling of the China relationship by the Burke, Martin and Henderson Governments and the missed opportunity that fell into Western Australia's lap at the expense of the NT. Post the Stone Government there was a lack of conviction that China was serious about the NT. The engagement of China towards the NT was evidenced through numerous visits and meetings and the opportunity squandered. One such 'State Owned Enterprise' who demonstrated a genuine interest in the NT was the China National Offshore Oil Company (CNOOC). By way of background in 1982 the People's Republic of China State Council (Cabinet) implemented the regulation of the people's petroleum resources in cooperation with foreign enterprises. CNOOC was incorporated and authorized to assume overall responsibility for the exploitation of oil and gas resources of offshore China in cooperation with foreign partners, which ensured monopoly status for CNOOC in offshore oil and natural gas. Under CEO Wei Liucheng (later Governor of Hainan Province 2003) and Chairman and Chief Executive Fu Chengyu CNOOC embarked on an aggressive acquisition path - the NT was in the frame. In time CNOOC acquired five blocks in Indonesia from Spanish oil company Repsol in 2002, becoming its largest offshore operator. In 2003, it bought 5.3 percent of a gas reserve in WA North West Shelf, ensuring supplies for the Guangdong LNG Dapeng project; that same year, CNOOC also acquired 12.5 percent of Tangguh to ensure supply to the Fujian LNG project. CNOOC tried to acquire 12.5 percent of Australia's Gorgon field to ensure supply to the Shanghai and Zhejiang LNG projects, but the parties could not agree on a price. However, before all those acquisitions, CNOOC was focused on the NT. In May 1998 CEO of CNOOC Wei Lieucheng accompanied by Senior Shell executives visited Darwin to talk business. Local Chinese Territorians at a reception to welcome Wei Lieucheng and THE CNOOC management team. The 'locals' emphasised the positive background to Chinese settlement in the 'Top End', the favourability towards the local Chinese population and urged a CNOOC commitment to the NT.



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