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Origin secures increased interest in Otway

Written by  AOG Staff Tuesday, 12 September 2017 08:54
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Origin Energy has entered into an agreement with Benaris to enable its subsidiary Lattice Energy to acquire Benaris’ 27.77% interest in the Otway Gas project, offshore Victoria, Australia. 

The acquisition is expected to complete when Lattice Energy is divested.

Under the terms of the agreement, Benaris’ 29.23% interest in the neighboring T/30P exploration joint venture and VIC/P43 exploration joint venture will also be acquired. Origin will pay Benaris AU$190 million.

The AU$190 million acquisition will see Lattice’s interest in the Otway Gas project increase to 95% and the exploration joint ventures to 100%.

Origin has the right to acquire the assets, although has no obligation to do so if the divestment of Lattice Energy does not proceed. The acquisitions are subject to certain conditions and also Toyota Tsusho pre-emptive rights for the Otway Gas Project Joint Venture.

Under a separate agreement, Lattice has also agreed to pay Benaris $60 million for 11.89 PJ of reserves to rebalance the share of gas between the parties relating to the historical lifting of production at Otway and to reach agreement on other joint venture matters.

The agreement will increase Lattice’s 2P reserves in the Otway Gas project by 11.89 PJ. The payment is not conditional on the divestment of Lattice.

“The alignment of interests in the joint venture and the simplification of the ownership structure is consistent with Origin’s preparations to divest Lattice Energy. These transactions, once completed, will help facilitate the future development of the joint ventures,” Origin said in a statement.

Image: Origin's Yolla platform / Origin 

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