BG Completes Deals to Sell Additional Interests in QCLNG Project to CNOOC

BG Group announced Monday that it has completed transactions with China National Offshore Oil Corporation (CNOOC) for the sale of additional interests in the Queensland Curtis LNG (QCLNG) project in Australia for $1.93 billion. Under a separate agreement, BG Group will also supply CNOOC with an additional 5 million tonnes per annum (mtpa) of liquefied natural gas (LNG).

CNOOC has also reimbursed BG Group for QCLNG project expenditure commensurate with its increased interests incurred from Jan. 1, 2012 to Sept. 30, 2013. From Oct. 1, CNOOC will fund project expenditure commensurate with its new equity holding.

Completion of the deal followed approvals from government, regulatory and other relevant authorities, and execution of related documents.

At the completion ceremony in Brisbane, BG Group Chief Executive Chris Finlayson said: “While today marks the completion of the agreements with CNOOC, it also signals the start of a new chapter in our partnership as we begin commissioning of the world's first coal seam gas to LNG project ahead of first commercial cargo in 2014.

“Our relationship with CNOOC has grown as they increase their investment in our QCLNG project and BG Group becomes the largest supplier of LNG to the world's fastest growing energy market.

“Today's agreements exemplify our strategy to manage our portfolio more actively, monetize assets at different stages in their lifecycle and bring in key partners to accelerate value delivery.

“I would also note that, importantly, the total funds received from the transaction improve our gearing by five percentage points.”