Origin Energy Limited (Origin) announced Tuesday it had completed the acquisition of Karoon Gas's (Karoon) 40 percent interest in two offshore exploration permits (WA- 315-P and WA-398-P) in Western Australia's Browse Basin.
Under the terms of the transaction, Origin has paid Karoon a $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's acquisition of the permits, which contain large and prospective offshore gas fields such as the Poseidon discovery, allows the company to establish a strategic position in one of Australia's largest recent offshore gas discoveries.
The acquisition complements Origin's recent farm-ins in the Cooper and Beetaloo basins and the awarding of new exploration acreage to the company in the Bonaparte Basin.
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