Australian Origin Hikes Stake in Otway Gas Project
Australian Origin Energy’s oil and gas division Lattice Energy has secured a A$190mn deal to acquire Benaris' 27.77% interest in the Otway Gas Project Joint Venture, Origin said September 11. The acquisition is expected to complete when Lattice Energy is divested.
Under the terms of the agreement, Benaris’ 29.23% interest in the neighbouring T/30P Exploration Joint Venture and VIC/P43 Exploration Joint Venture will also be acquired. Benaris is part of Australian firm Evaluate Energy.
The acquisitions will increase Lattice Energy’s interest in the Otway Gas Project joint venture to 95% and the Exploration Joint Ventures to 100%.
Origin has the right to acquire the assets, although has no obligation to do so if the divestment of Lattice Energy does not proceed. The acquisitions are subject to certain conditions and also Japanese firm Toyota Tsusho's pre-emptive rights for the Otway Gas Project joint venture.
Under a separate agreement, Lattice has agreed to pay Benaris A$60mn for 11.89 PJ (317.8mn m3) of reserves to rebalance the share of gas between the parties relating to the historical lifting of production at Otway and to reach agreement on other joint venture matters. The agreement will increase Lattice Energy’s 2P reserves in the Otway Gas Project Joint Venture by 11.89 PJ. The payment is not conditional on the divestment of Lattice Energy.
Before the deal Otway Joint venture was: Origin 67.23%, Benaris 27.77% and Toyota 5%. The Otway project consists of offshore gas fields Thylacine in Tasmania and Geographe in Victoria, with gas and liquids extracted using an offshore platform and transported via pipelines to an onshore gas processing plant in Port Campbell, Victoria.