The existing agreement provides for ATP632P to supply up to 90 petajoules of gas to CS Energy over 15 years. With the proposed new gas agreement with CS Energy, BHPB will also negotiate farmin agreements to earn up to a 50% interest in three key blocks in the Surat Basin.
The farmin agreements would see BHP Billiton stepping in as a joint venture partner with QGC in ATP632P, and with QGC and Pangaea Oil and Gas in ATP620P and ATP648P.
As part of the farm-in, CS Energy will remain a major customer under the terms of the new gas supply agreement. The parties will work together during the intervening 90 day period to optimise the commercialisation of the Berwyndale South field.
QGC managing director Richard Cottee said the three party agreement signalled an new development phase for QGC.
"BHP Billiton's involvement will strengthen the technical ability of QGC in delivering cost-effective gas and will add marketing expertise to QGC's enormous gas resource.
"Combined with Queensland's growing demand for gas, this partnership has the potential to create commercial gas reserves in the Surat Basin extending beyond the existing Berwyndale South development," Cottee said.
