Reuters reported that China National Offshore Oil Corp will acquire half of one of the country leading coal seam gas companies for CNY 1.2 billion as the country third largest oil and Gas Company expands further in the unconventional gas business.

Industry sources with direct knowledge of the deal said CNOOC parent of Hong Kong-listed CNOOC Ltd will buy a 50% stake in China United Coalbed Methane Co Ltd. A signing ceremony for the deal would be held later on Wednesday

They said China United Coalbed Methane Co Ltd has 27 coal seam gas blocks with proven reserves of around 50 billion cubic metres.

China National Coal Group Corp, parent of China Coal Energy Co Ltd which owns 100% China United Coalbed Methane Co, would hold the other half of the company after the deal.

(Sourced from Reuters)