BP yesterday confirmed a £11.78bn deal to supply the China National Offshore Oil Corporation (CNOOC) with 20 years’ worth of liquified natural gas (LNG).
BP chief executive Bob Dudley said it was “a fair price for them and a fair price for us” in a deal that coincides with the state visit to the UK by Chinese Premier Li Keqiang.
The deal will boost China’s LNG imports by at least 1.5m tonnes per year. The country also recently overtook the US as the world’s largest net oil importer as it seeks alternatives to coal.
Last month, the China National Petroleum Corporation (CNPC) signed a $400bn (£236bn) 30-year supply of LNG from Russian energy giant Gazprom.
BP’s shares closed up 0.1 per cent at 506.1p.