BG Group Sells Additional Stake in Queensland Curtis LNG Project

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 of liquefied natural gas (LNG).

According to a statement by the British company, CNOOC has also reimbursed BG Group for QCLNG project expenditure commensurate with its increased interests incurred from 1 January 2012 to 30 September 2013.

From 1 October 2013 CNOOC will fund project expenditure commensurate with its new equity holding.

“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,” BG Group Chief Executive Chris Finlayson said.

The agreements exclude any interest in the Train 2 liquefaction facility, transmission pipeline and QCLNG project common facilities.

Key terms of the transactions are unchanged from those set out in the heads of agreement announced on 31 October 2012, and reiterated at the signing of binding agreements on 6 May 2013.

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