Jun. 2012 - CNOOC and Primeline Energy have received formal approval on the environmental impact assessment report for the development of the Lishui gas field from the State Oceanic Administration. The SOA had previously approved the routing of pipeline for the development. Primeline Energy, a partner on the field, reported that the EIA approval paves the way for the final regulatory approval required for the development, namely approval of the overall development program. Primeline expects that CNOOC will submit the ODP for confirmation by the National Reform and Development Committee shortly. Thus far, major construction contracts have been signed for the development to progress with fabrication of the platform and work on the pipeline are proceeding on schedule. The development is currently on time for first production, which is expected to be around 3Q 2013. The Lishui gas field is located on Block 25/34 offshore China and reportedly holds 4.9 billion cubic meters of proven gas reserves.

Jul. 2010 - CNOOC signed a framework agreement for the sale and purchase of natural gas to Zhejiang Natural Gas Development from the LS 36-1 gas field. Previously, the companies signed a gas sale agreement in principle defining the general terms on which Zheijang Gas agreed to purchase the future production of natural gas from the LS 36-1 gas field. This included the quality of gas, take-or-pay principles, base price, annual quantity and delivery schedule. Over the past year, while Primeline and CNOOC were preparing the field's overall development program, negotiations continued over detailed terms of the gas sale for a more formal framework agreement. According to Primeline, much of the details are the same except for a few detailed terms. During development of the production facility, once supply and production details are confirmed, CNOOC and Primeline will negotiate further details of the gas sale, with the framework agreement likely to be replaced by a final gas sale contract. The agreement is subject to governmental approval.

Jul. 2010 - Primeline Energy received notification from CNOOC that the Supplemental Development Agreement for the LS 36-1 gas field was ratified by China's Ministry of Commence and the agreement went into effect. The contract confirms that CNOOC will exercise its right under the petroleum contract relating to Block 25/34 to take a 51%-operating interest in the gas field. Meanwhile, Primeline and CNOOC will prepare to submit the ODP for the field's development for full Chinese governmental approval.