The world's two biggest listed oil companies signed an A$50 billion (£25 billion) deal to supply liquefied natural gas (LNG) from Australia to China in the largest-ever trade deal between the two countries.
ExxonMobil, the world's second most valuable oil company, will use its 25 per cent share of the Gorgon gas field off the coast of West Australia to provide LNG to PetroChina, the most valuable oil company in the world, for the next 20 years.
The deal comes at a delicate time for relations between the two countries, which squabbled over China's decision this month to charge four executives at the Chinese operations of Rio Tinto, the Australian miner, with spying.
The executives, including Stern Hu, an Australian citizen, have been accused by China of infringing trade secrets and bribery.
Australian then allowed Rebiya Kadeer, an ethnic Uighur Muslim that China has accused of inciting recent riots, a visa to attend a film festival, causing China to this week cancel a visit to Australia by one of its senior ministers.
Martin Ferguson, Australia's Minister for Resources and Energy, said that the A$50 billion gas deal showed that the two countries' trade relationship remained strong despite diplomatic difficulties.
The Gorgon field is half owned by Chevron Corp, the US-listed oil company, with the remaining 25 per cent held by Royal Dutch Shell.
Gorgon is Australia's biggest known gas field and developing the site is expected to cost A$50 billion, providing about 6,000 jobs.
Exxon has already agreed to sell LNG from Gorgon to India's Petronet over the next 20 years in an AUS$1 billion deal.
The deal comes at a delicate time for relations between the two countries, which squabbled over China's decision this month to charge four executives at the Chinese operations of Rio Tinto, the Australian miner, with spying.
The executives, including Stern Hu, an Australian citizen, have been accused by China of infringing trade secrets and bribery.
Australian then allowed Rebiya Kadeer, an ethnic Uighur Muslim that China has accused of inciting recent riots, a visa to attend a film festival, causing China to this week cancel a visit to Australia by one of its senior ministers.
Martin Ferguson, Australia's Minister for Resources and Energy, said that the A$50 billion gas deal showed that the two countries' trade relationship remained strong despite diplomatic difficulties.
The Gorgon field is half owned by Chevron Corp, the US-listed oil company, with the remaining 25 per cent held by Royal Dutch Shell.
Gorgon is Australia's biggest known gas field and developing the site is expected to cost A$50 billion, providing about 6,000 jobs.
Exxon has already agreed to sell LNG from Gorgon to India's Petronet over the next 20 years in an AUS$1 billion deal.
Source: The Times
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