AUSTRALIA

QCLNG speculation as Lund takes over BG

BG Group asset sales, including a possible stake of the Queensland Curtis LNG venture, are expect...

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Last week BG posted a $US5.03 billion ($A6.44 billion) loss for the December quarter with the QCLNG operator writing off $4.5 billion from its Australian assets in post-tax impairments.

According to Reuters, Lund started work as BG's new CEO on Monday when he was initially due to begin on March 2.

Experts are looking for him to make divestments as he was known for transforming Statoil into "a multi-billion-dollar international oil major largely by reducing its ownership of upstream assets".

"BG has been reviewing its portfolio for over a year now in need to shed excessive costs," the newswire reported.

"Analysts are eyeing parts of its LNG business, particularly in Tanzania, to go on the chopping block, along with a 50% stake in BG's Queensland Curtis LNG export plant, which could fetch $5-10 billion."

While weaker oil and gas price forecasts underpinned BG's recent write downs, the $1.8 billion post-tax impairment for the QCLNG pipeline will be overcome once this asset's sale to APA Group is completed in this half - with BG expecting a $3.3 billion pre-tax profit on this $5 billion deal.

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