LONDON (Alliance News) - Altona Energy PLC Friday said it would press ahead with its Arckaringa coal-to-liquids project in Australia alone for now after ending its joint venture with China National Offshore Oil Company, although it has started talks with potential new partners.
In a statement, the company said the companies had mutually agreed to terminate the joint venture deal and CNOOC's 51% stake in the project will be transferred to Altona once the move is approved by authorities in South Australia.
CNOOC had been operator of the project, but Altona will now take over. Altona said the Chinese firm will hand over all key study materials that it has compiled or prepared since becoming the operator.
It said it has already identified and started talks with potential new partners, and in the meantime had hired Parsons Brinckerhoff to ensure the bankable feasibility study is completed.
"Working with CNOOC was becoming an increasingly frustrating experience all round, particularly for our shareholders, and we are excited to be talking to potential partners who are showing real dynamism and enthusiasm to work with us," Chief Executive Chris Lambert said.
"It is as economically, environmentally and socially viable as it always has been, we are fully funded through the current licence period, and with the restraints removed, we can now move forward with real purpose once again," he added.
Altona Energy shares were down 1.2% at 1.1604 pence Friday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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