Subscribe free to our newsletters via your
. 24/7 Space News .

BHP Billiton sells stake in Australian LNG
by Staff Writers
Brisbane, Australia (UPI) Dec 12, 2012

Mining giant BHP Billiton said it would sell its interest in the Browse natural gas project offshore Western Australia to Chinese state-run oil producer PetroChina for $1.63 billion.

Under the deal announced Wednesday, PetroChina would acquire an 8.33 percent interest in the East Browse Joint Venture and a 20 percent interest in the West Browse Joint Venture, equivalent to 1-10th of the overall Browse development.

Other partners in the Woodside Petroleum-led Browse project are BP, Japan Australia LNG -- a Japanese consortium that includes Mitsubishi and Mitsui -- and Shell.

"This is an excellent opportunity for both companies. PetroChina has acquired an interest in a world class gas resource and BHP Billiton has exited a non-strategic asset," BHP Billiton Chief Executive Petroleum J. Michael Yeager said in a release.

The deal is subject to regulatory approvals and the Browse partners have the right to match PetroChina's bid.

The Browse resource, off the Kimberly coast, contains an estimated 15.5 trillion cubic feet of recoverable gas and additional volumes of condensate, The Wall Street Journal reports.

Australia's LNG sector has been plagued by rising labor costs, infrastructure bottlenecks and the strong Australian dollar.

BHP's decision comes a week after Chevron announced that the cost of its Gorgon LNG project off the coast of Western Australia has increased by $15 billion, or 40 percent, to $52 billion, from an original estimate of $37 billion when the project was approved in 2009.

In August Chevron sold its interest in Browse, allowing Shell to increase its holding. Prior to that, in May, Japan Australia LNG bought its 14.7 percent stake in Browse from Woodside for $2 billion, reducing Woodside's holding in the project to 31.3 percent.

"With misaligned partners BHP and Chevron out of the project and Chinese and Japanese buyers in, the partnership is now effectively aligned on the development of Australia's last major greenfield LNG development," Bernstein Research analyst Neil Beveridge said in a note reported by Platts.

"The only outstanding uncertainty is now development cost, although the move by PetroChina (which appears to have a global gas alliance with Shell) would seem to indicate a confidence that the project can move ahead," Beveridge said.

The deal follows Canada's approval last Friday of Chinese state-run China National Offshore Oil Corp.'s $15 billion takeover of Canadian energy company Nexen Inc.

Bloomberg News says that Chinese companies have entered into investment ventures worth $25 billion in the oil and gas sector this year.

China's natural gas demand is expected to more than quadruple to 545 billion cubic meters by 2035, says the International Energy Agency. Under China's 12th five-year plan, imports are expected to fill 35 percent of China's gas needs by 2015, up from 15 percent in 2010.


Related Links
Powering The World in the 21st Century at

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

BHP offloads Australia LNG interest to PetroChina
Sydney (AFP) Dec 12, 2012
Global mining giant BHP Billiton said Wednesday it had agreed to sell its stake in the proposed Browse liquefied natural gas project in Australia to PetroChina for US$1.63 billion. The Anglo-Australian miner will offload its 8.33 percent interest in the East Browse joint venture and 20 percent stake in the West Browse joint venture, both located off the West Australian coast. "This is an ... read more

Apollo's Lunar Dust Data Being Restored

To the moon and back for less than 2 billion dollars

NASA's GRAIL Creates Most Accurate Moon Gravity Map

Chinese astronauts may grow veg on Moon

Charitum Montes: a cratered winter wonderland

Opportunity Continues Rock Studies

Orbiter Spies Where Rover's Cruise Stage Hit Mars

NASA to send new rover to Mars in 2020

What happens to plant growth when you remove gravity?

Scientists say NASA's budget inadequate for its goals

What trends will take upper hand in space exploration?

To reach final frontier, NASA can't go it alone: analysts

Mr Xi in Space

China plans manned space launch in 2013: state media

China to launch manned spacecraft

Tiangong 1 Parked And Waiting As Shenzhou 10 Mission Prep Continues

Medical Ops, Fan Checks for Space Crew; New Trio Checks Soyuz

Khrunichev Completes Nauka Space Station Module

New Crew of ISS to Perform Two Spacewalks

Space Station to reposition for science

ULA Launch Monopoly to End

SPACEX Awarded Two EELV Class Missions From The USAF

Russia Set to Launch Telecoms Satellite for Gazprom

Sea Launch Delivers the EUTELSAT 70B Spacecraft into Orbit

Astronomers discover and 'weigh' infant solar system

Search for Life Suggests Solar Systems More Habitable than Ours

Do missing Jupiters mean massive comet belts?

Brown Dwarfs May Grow Rocky Planets

Russia saves satellite after launch glitch

Mobile Internet forcing computers to evolve

Malaysia orders Australian miner to ship out waste

$99 Google laptops for schools sold out

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement