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    Australian Origin Energy to List Conventional Upstream Business

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Summary

Origin Energy December 6 announced its intention to divest its conventional upstream business via initial public offering with NewCo to be listed on the Australian Securities Exchange.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, News By Country, Australia

Australian Origin Energy to List Conventional Upstream Business

Origin Energy December 6 announced its intention to divest its conventional upstream business via initial public offering with NewCo to be listed on the Australian Securities Exchange.

NewCo will include Origin’s interests in the Otway Gas Project, BassGas Project, Kupe Gas Project, and the Perth, Cooper, Bonaparte and Canterbury basins. Origin will retain its interests in Australia Pacific LNG, Ironbark and the Browse and Beetaloo basins. NewCo will be a mid-cap exploration and production company listed and will have diversified exposure to the Australian east coast, west coast and New Zealand gas markets. It will have a mix of production and exploration assets, Origin said.

Origin Chairman Gordon Cairns said the decision to divest is consistent with Origin’s strategy to focus the business, reduce debt and improve returns for shareholders. “Given Origin’s ability to invest capital in the NewCo assets is constrained, their long term value will be better supported by them being an independent business.”

Origin CEO Frank Calabria said, “The divestment of Origin’s conventional upstream business will be a major step towards restoring the company’s financial flexibility and is expected to improve Origin’s return on capital.”

 

Shardul Sharma