Australian energy firm AWE has sold some of its stakes in assets located in the offshore Bass Basin, Tasmania, to Prize Petroleum Company, a subsidiary of India-based Hindustan Petroleum.

The transaction includes AWE’s 11.25% interest in T/L1; the BassGas infrastructure and Yolla field, and a 9.75% stake in T/18P; the Trefoil field.

“Total consideration for the sale was AUS$85m ($74m) with payment structured in three tranches.”

Total consideration for the sale was AUS$85m ($74m) with payment structured in three tranches.

AWE managing director Bruce Clement said the successful completion of the 11.25% BassGas interest sale is another strategic milestone for AWE.

“Preparations are well underway for the final two stages of the BassGas Mid Life Enhancement (MLE) project with the gas compression and condensate pumping modules lifts scheduled for late 2014, and the drilling of two development wells in early 2015.”

Upon completion, the gross production from BassGas is expected to increase to between 60 and 70 terajoules (TJ) per day, up from the 40TJ per day average achieved in the September quarter.

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By GlobalData

Origin Energy operates the BassGas project with a 42.5% stake, while AWE holds a 35% interest.

Toyota Tsusho Gas E&P Trefoil and Prize Petroleum each hold 11.25% stakes in the project.

The BassGas project features an offshore wellhead platform connected by pipeline to the gas processing facility at Lang Lang, Victoria, Australia.

BassGas, which will commercialise gas from the Yolla gas field in Bass Strait, is designed to produce about 24 petajoules of sales gas per year, together with one million barrels of condensate and 75,000t of LP Gas.

AWE currently holds a 35% stake in Trefoil and the company expects to increase its interest to 40% in the coming months on completion of the unrelated acquisition of a further 5% interest in T/18P from Drillsearch.