Origin Energy signs deal to increase Otway Project stake
Origin Energy has entered an agreement that will enable its wholly owned subsidiary Lattice Energy to acquire Benaris International's 27.77% interest in the Otway Gas Project Joint Venture.
Origin is the operator of Otway Gas Project, holding a 67.23% stake in the project, while the remaining 5% interest is owned by Toyota.
The acquisition also includes Benaris' 29.23% interest in the neighbouring T/30P Exploration joint venture and VIC/P43 JV.
Under the transaction, Origin will pay Benaris A$190m ($152.76m) after completion of the acquisition.
Following the acquisition, Lattice Energy’s interest in the Otway Gas Project Joint Venture will increase to 95% and to 100% in the two exploration JVs.
The acquisition is expected to close after the sale of Lattice Energy and is subject to other certain closing conditions.
Origin reserves the right to acquire the assets but will have no obligation if the Lattice Energy sale does not proceed.
Under a separate agreement, Lattice will pay Benaris $60m ($48.24m) for 11.89 quadrillion joules of reserves to rebalance the share of gas between the joint venture parties concerning the historical production at Otway.
The Otway project comprises offshore gasfields Thylacine in Tasmania and Geographe, Victoria.
Gas and liquids from the fields are recovered using an offshore platform and delivered through a pipeline to the onshore processing plant at Port Campbell, Victoria.