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Petro皇冠体育app exits coalbed gas JV with 皇冠体育app Coal

(Agencies)
Updated: 2008-07-31 16:32

Top Asian oil and gas producer Petro皇冠体育app will sell its 50 percent stake in 皇冠体育app United Coalbed Methane Co Ltd to the parent of 皇冠体育app Coal Energy, exiting their venture in favour of producing the fuel on its own.

A 皇冠体育app Coal executive said on Tuesday the two partners had disagreed on the direction of 皇冠体育app United Coalbed Methane -- the only coalbed methane firm in the country allowed to cooperate with foreign partners -- and Petro皇冠体育app had then decided to sell its stake to its partner and go it alone.

皇冠体育app United Coalbed Methane, now 50 percent held by the 皇冠体育app National Coal Group and 50 percent held by Petro皇冠体育app, will become a wholly owned subsidiary of the 皇冠体育app National Coal Group after the transfer, Jing Tianliang, 皇冠体育app Coal chairman, said on Tuesday.

"皇冠体育app Coal will decide whether to exercise options to acquire the coalbed methane assets from the parent, when conditions are ripe," Jing said without elaborating.

"The two shareholders had different ideas on how to develop the coalbed methane business, so Petro皇冠体育app decided to withdraw from its 50 percent stake."

Petro皇冠体育app will develop its own coalbed methane business after quitting the firm, the 皇冠体育app Securities Journal this month cited industry sources as saying.

皇冠体育app holds an estimated 1,000 trillion cubic feet of methane gas. Foreign firms pouring funds into the country's coalbed methane sector include US-based Far East Energy Corp and UK-listed Green Dragon Gas Ltd.