CNOOC, BG Group agree on new LNG supply, QCLNG stake

01 November 2012 04:02  [Source: ICIS news]

SINGAPORE (ICIS)--China National Offshore Oil Corp (CNOOC) announced on late Wednesday that it has signed a deal with UK-based BG Group (BG) for new liquefied natural gas (LNG) supply and certain stake in the Queensland Curtis LNG (QCLNG) project for $1.93bn (€1.49bn).

Under the framework agreement, BG will supply 5m tonne/year of LNG to CNOOC for 20 years starting from 2015, sourced from its global LNG portfolio, thus increasing BG’s total contract supply to CNOOC to 8.6m tonnes/year, the Chinese company said in a statement.

In addition, CNOOC will increase its interest in QCLNG train 1 to 50% from the existing 10%, its stake in the reserves and resources of certain BG tenements in the Walloons Fairway region of the Surat Basin, Queensland, to 25% from the present 5%.

CNOOC will also acquire a 25% working interest in certain upstream tenements held by BG Group in the Bowen Basin, Queensland.

The two companies will jointly invest in the construction of two LNG ships in China, in addition to the two ships already committed under an agreement signed in March 2010. Meanwhile, CNOOC will have the option to participate as a 25% partner in the first of any potential expansion trains at QCLNG.

The two are expected to sign final agreements and complete the transactions in 2013.

($1 = €0.77)

By: Fanny Zhang
+65 6780 4359

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