Origin Acquires Karoon's 40% Interest in 2 Permits in WA's Browse Basin
Origin Energy Limited (Origin) reported Monday that it has entered into a conditional Sale and Purchase Agreement with Karoon Gas (Karoon) to acquire its entire 40 percent interest in two exploration permits (WA-315-P and WA-398-P) in Western Australia’s Browse Basin (Poseidon permits). These permits contain large and prospective offshore gas fields, such as the Poseidon discovery.
ConocoPhillips, the project operator, and PetroChina hold 40 percent and 20 percent interests in the permits respectively and also retain pre-emption rights for a limited period relating to the sale of Karoon’s 40 percent interest in the Poseidon permits.
Following satisfaction of all conditions precedent and appropriate regulatory approvals, Origin will pay $600 million cash consideration with additional payments of $75 million payable upon a project Final Investment Decision (FID) and $75 million payable on first production. A further payment of up to $50 million will be payable on first production if 2P reserves at the time of FID reach certain thresholds.
Origin will participate in the ongoing exploration and appraisal program - including the Pharos well which is currently being drilled by the joint venture - on a proportional basis to augment Poseidon’s existing resource position. Options to monetize the Poseidon field’s resources may include transporting natural gas to LNG production facilities in Darwin or through a standalone floating LNG facility.
Origin will initially fund the acquisition from existing committed undrawn debt facilities which totalled $5.19 billion (AUD 5.6 billion) as at the end of April 2014. Given these facilities were put in place to fund Origin’s share of Australian Pacific LNG and maintain an appropriate liquidity buffer, the drawdown associated with this acquisition will be refinanced through an equity raising of around $0.92 billion (AUD 1 billion). This will occur through a pro-rata equity offer at an appropriate time following completion of the acquisition and, in any event, sometime after the release of Origin’s full year financial results Aug. 21.
Origin Managing Director, Grant King said, “Origin’s acquisition of a 40 percent interest in the Greater Poseidon area will allow the company to establish a strategic position in one of Australia’s largest recent offshore gas discoveries at a competitive entry price when compared to recent transactions in the Browse/Bonaparte region.
“Poseidon is located in one of Australia’s most significant hydrocarbon regions and various options exist to monetize the gas through LNG export opportunities linked to growing demand in the Asian region.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call