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CNOOC signs $1.6b engineering deal for Siberian LNG project

Staff writer |
A subsidiary of Chinese state oil giant China National Offshore Oil Corporation (CNOOC) has signed an around $1.6 billion deal to build equipment for a liquefied natural gas project in Siberia.

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Under the agreement, CNOOC's Offshore Oil Engineering Co will build "core modules" for the liquefication process on the project in Yamal in the Russian Arctic, according to a statement posted on CNOOC's website.

Novatek, Russia's second-largest gas producer, is developing the $27 billion Yamal LNG project with France's Total and China's top energy group, State-owned China National Petroleum Corporation (CNPC).

The first production unit, with annual capacity of 5.5 million tons, is due to be launched in 2017. In May, CNPC signed a deal to buy 3 million tons of LNG per year from the Yamal project, as did Russia's Gazprom .

CNPC also agreed in May to buy 38 billion cubic meters of gas per year from Russia's Gazprom, in a deal unofficially valued at $400 billion.

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