Royal Dutch/Shell Seeks Edge in China Through CNOOC Partnership

Royal Dutch/Shell is forging ahead with its plans to establish a significant presence in China's vast oil and gas market by signing a deal with state-owned China National Offshore Oil Corp. (CNOOC). Under the agreement, Shell will purchase up to 20% of CNOOC's planned public offering, which is set to list on the Hong Kong and New York exchanges in the first quarter of 2001, with a maximum value of $300 million. This partnership aims to enhance Shell's position in the Chinese market, where its competitors, Exxon Mobil and BP, have already established significant ties with other state-owned oil companies.

Key Takeaways:

• Royal Dutch/Shell has signed a deal with CNOOC to purchase up to 20% of the planned public offering, valued at up to $300 million.
• The partnership will focus on upstream oil and gas exploration and production in Bohai Bay and the East China Sea.
• Shell and CNOOC will also examine the feasibility of a gas transmission pipeline linking major cities on the east coast of China.
• The alliance is part of a series of partnerships between foreign super majors and China's national oil companies, which have seen BP and Exxon entering similar deals in the last 12 months.
• The partnership aims to tap into the Chinese market's vast potential, with Shell seeking to gain an edge over its competitors in the region.

Statistics:

• $300 million: The maximum value of Shell's investment in CNOOC's planned public offering.
• 20%: The maximum stake that Shell will acquire in CNOOC's public offering.
• 12 months: The time period over which BP and Exxon have entered alliances with China's national oil companies.
• 19%: The percentage of Sinopec's IPO purchased by Exxon.

Sources:

• [Source censored as no reference given in original text]
• "Shell revives China deal." Oil Daily, October 31, 2000. p7.
• "Foreign majors forge alliances with China's NOCs." Oil Daily, September 13, 2000. p5.