US-based ConocoPhillips has acquired an additional 10% stake in the Australia Pacific LNG (APLNG) project, from Origin Energy, for $1.645bn.
ConocoPhillips said it made a cash payment of approximately $1.4bn for the additional interest in the project, following the customary closing adjustments.
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For this deal, ConocoPhillips exercised its pre-emption right to increase its stake in the APLNG project, to from 37.5% to 47.5%.
The pre-emptive move came in response to a $1.59bn deal signed by Origin Energy, in October 2021, to sell a 10% stake in the project to US-based energy investor EIG.
ConocoPhillips chairman and CEO Ryan Lance said: “We are pleased to acquire this additional stake in APLNG which, throughout its six years of operations, has served as a reliable and efficient supplier of natural gas to the growing Asia Pacific market, and to Australia’s East Coast gas market.
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“With the global energy transition underway, we expect LNG to play an increasingly important role, as it is lower in greenhouse gas emissions intensity than other alternatives.
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By GlobalData“At the same time, this strategic acquisition of an additional shareholding interest in APLNG further diversifies our product mix while lowering our aggregate decline rate.”
ConocoPhillips’ full-year 2021 production rates from the APLNG project stood at 113,000 barrels of oil equivalent per day.
Origin Energy’s stake in the project is reduced to 27.5% while Sinopec holds a 25% interest.
Last year, ConocoPhillips purchased Permian assets, in the US, from Royal Dutch Shell subsidiary Shell Enterprises, for $9.5bn.
The transaction included Shell’s 225,000 net acres and producing properties in Texas, along with 175,000 barrels equivalent per day.
