CNOOC Hikes Stake in China CBM

China National Offshore Oil Corporation (CNOOC) has said that it will hike its stake in country's leading coal bed methane producer, China United Coalbed Methane Co (China CBM).

CNOOC will buy 20% of China CBM's shares from the China National Coal Group Corporation (ChinaCoal), as per a statement by CNOOC. This move will result in CNOOC’s share rising to 70 per cent. The remaining 30 per cent will remain with ChinaCoal. In 2010, CNOOC bought a 50-percent stake in China CBM.

At present, China CBM, the country's largest state-owned coal bed methane producer, owns exploration and mining rights to areas adding up to a total of 18,200 square km, China Economic Net said. CNOOC signed a 30-year deal last year with China CBM to explore coal bed methane in nine provinces.

By the end of 2011, China CBM's proven coalbed methane reserves had hit 107 billlion cubic meters and its annual output capacity had reached 1.1 billion cubic meters, the new report said.

China's coalbed methane reserves are estimated to be 36.8 trillion cubic meters, ranking third-largest in the world after Russia and Canada.