CNOOC announces completion with BG Group for additional interests in QCLNG project
China National Offshore Oil Corporation (hereinafter referred to as "CNOOC") finalizes the completion with BG Group for the acquisition of additional interests of the Queensland Curtis LNG (hereinafter referred to as "QCLNG") project in Australia on Nov 11th, 2013. Meanwhile, CNOOC will purchase an additional 5 million tonnes per annum (mtpa) of liquefied natural gas (LNG) for 20 years from BG Group. The foregoing completion is based on the package of LNG agreements signed on May 6th, 2013, which have already been approved by the relevant governmental and regulatory authorities and become effective, the company said in its press release.
CNOOC President Yang Hua and BG Group Chief Executive Chris Finlayson have attended the completion ceremony.
Mr. Yang Hua, President of CNOOC, said, "Finalising the completion with BG Group for the additional interests in QCLNG will not only substantially enhance the partnership in QCLNG and further the cooperation in the field of LNG between both parties, but also significantly facilitate the construction of CNOOC's overseas production base of LNG. CNOOC will continuously strive to acquire competitive natural gas resources around the world, and to make positive contribution to developing China's natural gas industry and securing clean energy supply to China."
Under the terms of the package of agreements:
• BG Group will supply CNOOC with an additional5 mtpa of LNG for 20 years beginning in 2015, sourcing from BG Group's global LNG portfolio;
• CNOOC will acquire a 40% interest in QCLNG Train 1, increasing its equity from 10% to 50%;
• CNOOC will acquire an additional 20% interest in the reserves and resources from certain BG Group’s tenements in the Walloons Fairway region of the Surat Basin, Queensland, increasing its equity from 5% to 25%;
• CNOOC will acquire a 25% 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 additional LNG ships in China, in addition to the two ships committed under the LNG agreements signed in March 2010; and
• CNOOC will have the option to participate up to 25% in one of the potential expansion trains at QCLNG.
At the moment, CNOOC operates 5 LNG receiving terminals at Guangdong, Fujian, Zhejiang and Shanghai, among which the newly built Zhuhai LNG terminal has successfully received the first LNG cargo on October 25th, 2013. The Hainan, Shenzhen and Yuedong LNG receiving terminals, which are currently under construction, will gradually come up online in the following years.
