China oil firm wins Aussie bid

CHINA National Offshore Oil Corp, Total SA and India's Reliance Industries Ltd have won oil and gas exploration permits in Australia.

Hess Corp, Santos Ltd and Woodside Petroleum Ltd also won offshore licenses in the bidding auction, which will result in an investment of more than A$800 million (US$688 million) on exploration over the next six years, Industry Minister Ian Macfarlane said yesterday in a statement.

Australia awards oil and gas exploration permits depending on the amount of exploration work bidders pledge to carry out, Bloomberg News said. China National Offshore, a customer of the country's North West Shelf liquefied natural gas venture, hasn't explored in Australia until now.

"It's good to see new players in the market," Macfarlane said in the statement.

Twenty-one bids were received for the 11 licenses, he said.

China National Offshore's CNOOC Australia E&P Pty unit won a license in the Bonaparte Basin off north Australia, to the west of ConocoPhillips's producing Bayu-Undan gas and condensates field. The pledged to spend A$162.1 million over six years.