17th Jun 2014 11:09
LONDON (Alliance News) - British oil giant BP PLC will sign a long-term contract worth around USD20 billion, or about GBP11.8 billion, to supply liquefied natural gas to China National Offshore Oil Corp, BP Chief Executive Bob Dudley said at a conference in Moscow.
Dudley said BP and CNOOC will sign the 20-year deal in London.
British Prime Minister David Cameron will announce a series of trade deals to coincide with a three-day visit by Chinese Premier Li Keqiang.
Dudley said, "It is a 20-year supply agreement on LNG. It is a fair price for them and a fair price for us. It is a good bridge between the UK and China in terms of trade."
As per reports, BP will source much of the LNG from its US export plant at Freeport, Texas. The company owns 3 million tonnes per year of export capacity in that plant.
At present, BP supplies CNOOC with LNG from Indonesia.
Further, commenting on Iraq, Dudley said that the oil company's operations were largely unaffected by violence in that country, as BP's operations are in the south of the country, away from the violence.
He said, "We are just very vigilant in Iraq. Non-essential production people have left but operations continue."
Militants from the Islamic State in Iraq and the Levant or ISIL have made major advances in the past week and overran the northern city of Mosul. Since then, they have pressed south towards Baghdad, and reportedly have taken over parts of the city of Baquba. Iraqi government forces are engaged in heavy clashes with these militants.
In London, BP shares are losing 0.83 pence or 0.16%, and trading at 504.77 pence.
Copyright RTT News/dpa-AFX
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