Karoon Gas Australia Ltd has now notified ConocoPhillips of its intention not to exercise its right to pre-empt the proposed sale by ConocoPhillips of a 20% interest in Browse Basin exploration Blocks WA-315-P and WA-398-P to Chinese National Petroleum Company ('PetroChina').

By not exercising its pre-emptive right under the joint venture agreements, Karoon clears the way for the entry into the Joint Venture of a second highly appropriate partner for the future development of the Poseidon project. PetroChina is also a potential end user for LNG out of Poseidon.

As previously announced, PetroChina has agreed to acquire a 20% interest in the Browse Basin joint ventures covering exploration Blocks WA-315-P and WA-398-P ("Joint Venture"), which include the Poseidon gas condensate discovery.

Karoon welcomes PetroChina to the Joint Venture and looksforward to a productive relationship.

Tags: Karoon Gas Australia Ltd