11th Nov 2013 08:49
LONDON (Alliance News) - BG Group PLC Monday said it has sold more interest in Queensland Curtis LNG to China National Offshore Oil Corporation for USD1.93 billion.
The major natural gas producer said CNOOC will increase its holding by 40-percentage-points to 50% of the Australian site, and in return will pay the near USD2 billion pricetag and reimburse BG Group for project expenditure at Queensland Curtis commensurate to its increased interest for the period between January 1, 2012 and September 30, 2013.
BG said it will supply CNOOC with a further 5 million tonnes per year of liquefied natural gas for 20 years beginning in 2015.
CNOOC also will acquire a further 20% interest in the company's reserves and resources at its Walloons Fairway region of the Surat Basin in Queensland, bringing its total interest to 25%, and it will acquire a 25% equity interest in certain other upstream tenements held by BG Group.
The two groups will jointly invest in the construction of two liquefied natural gas ships in China, adding to the two ships already committed under a 2010 LNG agreement between the two companies.
BG Group said it now has begun commissioning of the world's first coal seam gas to LNG project ahead of the first commercial cargo in 2014.
BG Group shares were up 0.7% to 1,275.00 pence in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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