PetroChina secures approval to acquire interest in Canning Basin in Australia

New Standard Energy has announced that PetroChina has secured approval from the Chinese and Australian federal governments to acquire a 29% interest from ConocoPhillips in the company’s joint venture (JV) in the Southern Canning Basin in Western Australia for approximately $102m.

As a result, ConocoPhillips has a 46% stake in the Southern Canning Project, while PetroChina has 29% and New Standard 25%. New Standard will continue to be the operator of the JV.

New Standard managing director Phil Thick said that the receipt of national government approvals and settlement of the cash payment in the JV will allow PetroChina to partner with ConocoPhillips and New Standard in the Canning Basin.

"The addition of PetroChina provides further international validation of the Southern Canning Basin’s potential," Thick added.

"The combined partnership gives New Standard access to funding, technical expertise, development experience and potential offtake capacity and creates a formidable global partnership to help progress the Joint Venture."

New Standard holds 100% operating interest in EP’s 443, 450, 451, and 456 in Canning Basin of Western Australia.

The company also holds 100% operated interest in application areas of 1/09-0, 2/09-0 and 5/09-0, as well as 65% operated interest in EP417 in the Canning Basin.

In addition, the company holds 100% operated interest in the Seven Lakes SPA area of the Canning Basin.

The company has 100% operated interest in the Merlinleigh project in onshore Carnarvon Basin in Western Australia and 32.5% working interest in the Colorado County Project in onshore Texas, US.

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Image: The headquarters of PetroChina in Beijing, China. Photo: courtesy of Charlie fong.