BG Group 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 US$1.93bn. Under a separate agreement, BG Group will also supply CNOOC with an additional 5 Mt/year of liquefied natural gas (LNG) as of 2015. The key terms of the transactions are unchanged from those set out in the heads of agreement announced in October 2012, and reiterated at the signing of binding agreements in May 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; CNOOC will acquire a 40% equity interest in QCLNG Train 1, increasing its equity ownership from 10% to 50%; CNOOC will acquire a 20% 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% to 25%; CNOOC will acquire a 25% 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% in one of the potential expansion trains at QCLNG.
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