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CNOOC and BG Group have completed transactions of interests in Australia’s Queensland Curtis LNG project (QCLNG) and an additional LNG supply contract, BG Group announced in a press release on its website.

The deal, which was signed in an agreement in May, says that “CNOOC will acquire a 40% equity interest in QCLNG Train 1 liquefaction facility, raising its equity ownership from 10% to 50%; CNOOC will acquire a 20% interest in the reserves and resources of certain BG Group tenements in the Walloons Fairway region of the Surat Basin, Queensland, increasing its ownership from 5% to 25%; CNOOC will acquire a 25% interest in certain other upstream tenements held by BG Group in the Surat and Bowen Basins, Queensland; and CNOOC will have the option to participate up to 25% in one of the potential expansion trains at QCLNG.”

In addition, the two companies will jointly invest in the construction of two LNG ships in China. BG will also supply CNOOC with a further 5 mtpa of LNG for 20 years beginning in 2015, to be combined with the existing supply deal of 3.6 mtpa from 2010, making the company the largest LNG supplier to China.

CNOOC paid BG $1.93 billion for the transactions, according to earlier media reports.

QGC Pty Limited, BG’s Australian unit, remains operator and majority stake holder of the QCLNG project.

Upon participation, CNOOC will share project expenditure with BG in accord with the new ownership structure.