Altona Resources Plc, the AIM listed Australian based energy company, has entered into a Memorandum of Understanding (‘MOU’) with CNOOC (Beijing) Energy Investment Co., Ltd (‘CNOOC Energy’), a subsidiary of China National Offshore Oil Corporation, one of the three largest State owned oil companies in the Peoples Republic of China.
The MOU provides the basis for CNOOC Energy and Altona to build a long-term co-operative relationship towards the development of the Company’s 10 million barrel per year coal-to-liquids (‘CTL’) and 560 MW power co-generation Arckaringa Project in South Australia.
Altona Chairman Chris Lambert said, “We have always recognised that Altona would need a partner of major stature, given the size of the Arckaringa Project, and we are therefore delighted to have the support and interest of CNOOC Energy. With their immense resources and capabilities, CNOOC Energy is an ideal partner for Altona to work closely with in evaluating technology, off-take, financing and construction opportunities. The development of Arckaringa would deliver tremendous benefits to South Australia in providing a major new source of base load power and diesel to a State which has a significant looming power deficiency and currently imports all of its distillate requirements. The MOU is a major milestone for the Company and we look forward to building a long-term relationship with CNOOC Energy”.
