BHP Billiton Petroleum Group Chief Executive said PetroChina has acquired an interest in a world class gas source and BHP Billiton has exited a non-strategic asset
BHP Billiton,the Australian coal miner, had signed an agreement with PetroChina International Investment (Australia) Ltd to sell its interests in both the East Browse Joint Venture and the West Browse Joint Venture which own the LNG gas project.
The Australian coal miner said in Wednesday's announcement that it will sell its 8.33% interest in the East Browse Joint Venture and 20 per cent interest in the West Browse Joint Venture to the company for about USD 1.63 billion.
The LNG project, being carried out by the two Browse joint ventures on Western Australia's north-west coast, will help the distribution of gas from three gas fields which are estimated to have reserves of 13.3 trillion cubic feet of dry gas and 360 million barrels of condensate with a field life of 40 years.
PetroChina International Investment (Australia) Ltd is a 50:50 joint venture owned by PetroChina International Investment Company Ltd, a subsidiary of PetroChina, the largest oil and gas producer in China, and Shell Energy Holdings Australia Ltd, a subsidiary of Royal Dutch Shell plc.
BHP Billiton said the transaction which is subject to regulatory approval and other customary conditions, is expected to complete in the first half of 2013.
It would be a great opportunity for both companies as PetroChina has acquired an interest in a world class gas source and BHP Billiton has exited a non-strategic asset, said BHP Billiton Petroleum Group Chief Executive J Michael Yeager.