CNOOC partners with BG Group

China National Offshore Oil Corporation (CNOOC) has entered into key purchase agreements with UK-based BG Group. It has agreed to a 20-year liquefied natural gas (LNG) purchase agreement and LNG project agreements for the QCLNG Project in Queensland, Australia.

The LNG purchase agreement will supply 3.6 million tonnes of LNG per year to CNOOC over a 20-year period. Under the purchase agreement terms, CNOOC will be supplied with LNG manufactured at the Queensland Curtis LNG facility on Curtis Island. Additionally, BG Group may supply CNOOC with LNG from its global portfolio.

The CNOOC-BG Group LNG purchase and sale agreement was signed on March 24 2010 in Beijing. It is the world's first fully-termed sale and purchase agreement for the supply of LNG from coal seam gas. It marks the first sale of LNG from coal seam gas into China.

CNOOC was represented by Herbert Smith out of its Hong Kong office. The team was led by head of energy Asia Anna Howell and included Alexander Aitken, Justin D'Agostino, Ping Kit Loh and Phoebe Yuen. Other counsel involved are Mallesons Stephen Jaques for BG Group and Freehills as CNOOC's Australian counsel.