Platts reported that Australia's Altona Resources has entered into a MoU with a subsidiary of China National Offshore Oil Corporation under which the 2 companies would cooperate on the development of Altona's 10 million barrel per year coal to liquids and 560 MW power cogeneration project at Arckaringa in South Australia.

Mr Chris Lambert chairman of Altona said that "The MoU is a major milestone for the company and we look forward to building a long-term relationship with CNOOC Energy. We have always recognized that Altona would need a partner of major stature, given the size of the Arckaringa project, and we are therefore delighted to have the support and interest of CNOOC Energy."

He added that "With their immense resources and capabilities, CNOOC Energy is an ideal partner for Altona to work closely with in evaluating technology, off take, financing and construction opportunities. The development of Arckaringa would deliver tremendous benefits to South Australia in providing a major new source of base load power and diesel to a state which has a significant looming power deficiency and currently imports all of its distillate requirements."