China Knowledge reported that CNOOC Energy Investment Co Ltd on behalf of its parent China National Offshore Oil Corp has entered a memorandum of understanding with Australia-based Altona Resources Plc on developing a coal to liquid project.

Altona expects to benefit from the MoU on its 10 million barrel per year coal to liquids and 560 MW power co generation Arckaringa project in South Australia, leveraging on the Chinese company's "immense resources and capabilities."

CNOOC Corp, the country's largest offshore oil and gas producer, reaped a sales income and profit of CNY 162 billion and CNY 56.5 billion respectively with its total assets hitting CNY 309 billion in 2007.