BG secures Chinese funds to finance expansion plan
Tuesday 28 June 2011
BG signed a $1.5bn (£940m) agreement with the Bank of China yesterday to fund an expansion of the oil and gas giant's activities in the country.
The memorandum of understanding comes on top of an existing $200m loan facility between the bank and BG, which is already exploring for gas off China's Pacific coast.
"This is a significant agreement for BG Group," the company's chief executive Sir Frank Chapman said. "It affirms our existing excellent relationship with the Bank of China.
"BG Group has a well established presence in China, as a result of our LNG [liquefied natural gas] sales into this valuable and rapidly growing market, through a long-term sales and equity agreement with CNOOC and our QCLNG project in Australia, and with an extensive exploration programme offshore China that has already produced a discovery."
The MoU was one of £1.4bn worth of trade deals signed during yesterday's visit to the UK by the Chinese Premier Wen Jiabao. Although the BG agreement was the biggest, the visit also saw Chinese regulators approve Diageo's plans to take a controlling stake in Sichuan Chengdu Quanxing, the maker of the top Shui Jing Fang brand of Chinese "baijiu" vodka.
The Guinness to Smirnoff drinks giant will buy an additional 4 per cent stake in Sichuan Chengdu Quanxing for about £13m, taking its total holding in the joint venture to 53 per cent. The deal will trigger a mandatory offer by Diageo for the Chinese group, worth about £700m.
China also said it was lifting a ban on UK poultry exports. The summit follows Mr Cameron's visit to China in November last year, when Rolls-Royce struck a $1.2bn jet engine deal.
The latest trade initiatives came as the leaders steer the countries towards their target of expanding bilateral trade to $100bn by 2015, compared to about $38bn last year.
- 2 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 3 University student in court for allegedly covering housemates' food in window cleaner and spit
- 4 Ryan Gosling posts tribute to 'Ryan Gosling Won't Eat His Cereal' creator Ryan McHenry
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Garland shooting: Isis claims attack on Prophet Mohamed cartoon contest in Texas as its first action on US soil
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...