Origin enters agreement with Benaris for acquisition of Otway gas project interest Martin Kovacs, 11 Sep 2017

Origin Energy has advised that it has entered into an agreement with Benaris to enable Lattice Energy to acquire Benaris' 27.77% interest in the Otway gas project joint venture, with the acquisition expected to complete when Lattice is divested.

Origin advised that under the agreement's terms, Benaris’ 29.23% interest in the neighbouring T/30P exploration joint venture and VIC/P43 exploration joint venture will also be acquired.

On completion of the acquisitions, which will increase Lattice’s interest in the Otway gas project joint venture to 95% and the exploration joint ventures to 100%, Origin will pay Benaris $190 MM, adjusted to reflect an effective date of July 1, 2017, Origin stated.

“Origin has the right to acquire the assets, although has no obligation to do so if the divestment of Lattice Energy does not proceed,” Origin stated. “The acquisitions are subject to certain conditions and also Toyota Tsusho preemptive rights for the Otway gas project joint venture.”

Origin advised that under a separate agreement, Lattice has agreed to pay Benaris $60 MM for 11.89 PJ of reserves, rebalancing the share of gas between the parties relating to the historical lifting of Otway production and to reach agreement on other joint venture matters, increasing Lattice's 2P reserves in the Otway gas project joint venture by 11.89 PJ, with the payment not conditional on the divestment of Lattice.

“The alignment of interests in the joint venture and the simplification of the ownership structure is consistent with Origin’s preparations to divest Lattice Energy,” Origin stated. “These transactions, once completed, will help facilitate the future development of the joint ventures.”

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