NEWS
BHP Billiton sees 'favourable impact' of LNG
London, Aug 24 (LNG journal)
- BHP Billiton, a participant in Australia's North West Shelf (NWS) liquefied natural gas venture, said LNG had a "favourable impact" as its energy division posted a 31 percent increase in pretax annual profit to US$1.8 billion.
New production from NWS LNG Train 4 ( Australia ) and three other projects, along with profit from the sale of third-party product compared with losses last year helped increase earnings, the company said.
However, the rise in profits at the energy division of the mining-to-petroleum giant was mainly due to higher average realised prices for all products compared with last year, the BHP earnings statement said.
This included a higher average realised oil price per barrel of US$47.16 compared to US$32.24, and higher average realised natural gas prices of US$2.98 per thousand standard cubic feet compared with US$2.62 per thousand standard cubic feet.
BHP, whose shares are listed in London and Sydney, referred in its earnings statement Wednesday to the sale of an equity participation in the NWS project, along with its five partners, to China National Offshore Oil Corp.
The deal is connected to the supply of LNG to Guangdong province in southern China.
"CNOOC will acquire title to approximately 5.8% of the current NWS Project gas reserves and rights to process its gas and associated LPG and condensate through NWS Venture offshore and onshore infrastructure, BHP said.
CNOOC paid each joint venture partner US$59 million, resulting in a profit on sale for BHP of US$56 million, it added.
The other NWS shareholders are Shell, BP, Chevron Corp., Woodside Energy Ltd, and Japan Australia LNG.
