The field development framework provides a mechanism for the parties to progress the technical design and conditions for the ultimate development of these jointly owned resources.
The commencement of gas sales to QGC is aligned with the start of commercial operations at QGC’s Queensland Curtis LNG project (QCLNG), which is expected in 2014. The initial contract term for gas sales to QGC from ATP 648P is 20 years and QGC holds two extension options, each with a five year term.
The parties have also agreed a short term gas sales agreement from ATP 620P for around two years from the commencement of commercial operations at QCLNG. This will assist both parties in managing their gas requirements as they ramp up production of their respective LNG projects. The actual volume of gas sold will depend upon field development and performance.
The CSG tenements are operated by QGC with Australia Pacific LNG’s permit interests being 31.25% for ATP 648P and 40.63% for ATP 620P.
