China National Offshore Oil Corp (CNOOC) has won approval from Australia's Ministry of Treasury to invest in a $53 million in Queensland to explore coal seam gas and shale gas, its partner Exoma Energy said on Thursday.

Under an agreement signed in December, CNOOC committed to paying at least $53 million for a 50-percent stake in Exoma's Galilee Basin exploration project and got an option to buy 173.2 million shares in Exoma, a 35-percent stake based on Exoma's current share base.

The deal is still subject to approval from the Chinese and Queensland governments.

CNOON has been investing heavily in unconventional energy sources such as liquefied natural gas and coal seam gas, showing its determination to carve out a niche in the oil market, as China's onshore oil assets have been mainly controlled by Sinopec and PetroChina, said Zhou Xiujie, a researcher at China Investment Consultancy.

China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.

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