07 December 2012 08:06 [Source: ICIS news]
SINGAPORE (ICIS)--Hong Kong-listed Sino Oil and Gas announced on late Thursday a plan to set up a joint venture (JV) with a Canadian firm that will focus on providing China with supply of natural gas.
A memorandum of understanding (MOU) was signed on 4 December between the company and the unnamed Canada-based oil and gas service company on the proposed yuan (CNY) 40m ($6.4m) joint venture, Sino Oil and Gas said in a statement.
Under the MOU, the proposed JV will be owned 60% by Sino Oil and Gas and 40% controlled by the Canadian company.
The joint venture will participate in the Sino Oil and Gas’ existing coal bed methane (CBM) project at Sanjiao in China’s Shanxi province and will also explore other opportunities in the market, according to the statement.
The JV is expected to increase the efficiency and effectiveness of Sino Oil and Gas’ operation in Sanjiao, and in long term, create a new revenue driver, the company said.
($1 = CNY6.23)
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