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BG Group reports massive write-down on Aus assets

4th February 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – British oil major BG Group has warned of a $6.8-billion noncash impairment charge on its Australian assets for the fourth quarter ended December 31, driven by the fall in global commodity prices.

BG told shareholders that, following the December agreement to sell its wholly-owned subsidiary Queensland Curtis liquefied natural gas (QCLNG) Pipeline to the APA Group for $5-billion, the remaining QCLNG assets would be impaired by $2.7-billion.

A further $4.1-billion in noncash impairment charges were the result of a reduction in the group’s assumptions of future commodity prices.

Train 1 at the QCLNG project was expected to reach plateau output of around four-million tonnes a year in the second quarter of 2015, with Train 2 expected to come on-stream in the third quarter. Plateau production from both trains of around eight-million tonnes a year should be achieved by mid-2016.

Up to 20% of gas for the two trains will be supplied by third-party contracts during the ramp-up phase.

Edited by Creamer Media Reporter

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