BG Group (LSE:BG) $80 Billion Deal with China National Offshore Oil Corp

BG Group in Huge Natural Gas Deal with China

BG Group (LSE:BG) is about to sign a major deal worth from $50 billion to up to $80 billion with China National Offshore Oil Corp for a liquified natural gas agreement.

If prices are close to last years' prices, the deal would be close to the higher end of $80 billion.

This is why Australia and China have been working hard behind the scenes to patch up their relationships, as this follows a deal with PetroChina and Royal Dutch Shell for Arrow Energy, also based in Australia for $3.4 billion. That was for coal-seam gas.

BG Group in Huge Natural Gas Deal with China

PetroChina (NYSE:PTR) Royal Dutch Shell (NYSE:RDS-B) Acquire Arrow Energy

PetroChina and Royal Dutch Shell Acquire Arrow Energy

After increasing their offer by 6 percent, PetroChina (NYSE:PTR) and Royal Dutch Shell (NYSE:RDS-B) agreed to acquire Arrow Energy for $3.1 billion.

This is the first entry by a Chinese company into the natural gas trapped in the coal of Queensland, Australia. Arrow owns the coal-seam gas resources reserves in the region.

The price is considered a premium of 35 percent over the original pre-announcement close.

Australian regulators will have to approve the deal, but there's no indication that will be a problem. Shareholders will also have to vote to approve the deal, which was recommended by the board of the company to accept.