BG Completes Deals to Sell Additional Interests in QCLNG Project to CNOOC
by BG Group plc
|
Press Release | Sunday, November 10, 2013 | 8:41 PM EST
The key terms of the transactions are unchanged from those set out in the heads of agreement announced Oct. 31, 2012, and reiterated at the signing of binding agreements May 6, 2013;
- BG Group will sell certain interests in upstream coal seam gas tenements in Australia and a further equity stake in the QCLNG project Train 1 liquefaction facility;
- BG Group will supply CNOOC with a further 5 mtpa of LNG for 20 years beginning in 2015, sourced from the Group's global portfolio;
- CNOOC will acquire a 40 percent equity interest in QCLNG Train 1, increasing its equity ownership from 10 percent to 50 percent;
- CNOOC will acquire a 20 percent interest in the reserves and resources of certain BG Group tenements in the Walloons Fairway region of the Surat Basin, Queensland, increasing its ownership from 5 percent to 25 percent;
- CNOOC will acquire a 25 percent equity interest in certain other upstream tenements held by BG Group in the Surat and Bowen Basins, Queensland;
- BG Group and CNOOC will jointly invest in the construction of two LNG ships in China, adding to the two ships already committed under the LNG agreements signed in March 2010; and
- CNOOC will have the option to participate up to 25 percent in one of the potential expansion trains at QCLNG
The agreements exclude any interest in the Train 2 liquefaction facility, transmission pipeline and QCLNG project common facilities.
BG Group's Australian business, QGC Pty Limited, remains operator and retains majority ownership of the QCLNG project. In particular, BG Group will have:
- Around 74 percent of its original interest in the upstream resource and related infrastructure; and
- 100 percent of the project's common facilities on Curtis Island (including LNG storage tanks and jetty) and the 335 mile (540 kilometer) natural gas pipeline network linking the gas fields to Curtis Island. Together, these items represent approximately 30 percent of the estimated 2011-2014 project spend
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