BG Group and CNOOC sign Queensland Curtis LNG deal

BG Group has signed a heads of agreement (HOA) with China National Offshore Oil Corporation (CNOOC) for the sale of certain interests in the Queensland Curtis LNG project in Australia for $1.93bn (£1.2bn) and the sale of liquefied natural gas (LNG) from BG’s global LNG portfolio.

Fully termed transaction agreements are likely to be executed in the first half of 2013. Upon closing, CNOOC will reimburse BG for its share of Queensland Curtis LNG project capital expenditures incurred from 1 January 2012.

The interests include a stake in certain upstream tenements and the Train 1 liquefaction facility but exclude any interest in the Train 2 liquefaction facility, transmission pipeline and Queensland Curtis LNG common facilities.

Under the LNG sale agreement, BG will supply CNOOC with five million tonnes per annum of LNG for 20 years starting in 2015, sourced from the group’s global LNG portfolio.