Origin Energy unit acquires Benaris’ stake in Otway gas project

Sept. 13, 2017
Origin Energy Ltd., Sydney, on behalf of its oil and gas subsidiary Lattice Energy, has acquired Benaris International’s 28% interest in the Otway gas project offshore Tasmania and Victoria for $250 million (Aus.).

Origin Energy Ltd., Sydney, on behalf of its oil and gas subsidiary Lattice Energy, has acquired Benaris International’s 28% interest in the Otway gas project offshore Tasmania and Victoria for $250 million (Aus.).

The deal has Origin paying Benaris $190 million (Aus.) for its Otway interests that include the producing Thylacine gas field, in Tasmanian waters; Geographe gas field, in Victorian waters; the onshore processing plant at Port Campbell in Victoria; and two nearby exploration permits.

Origin also will pay Benaris $60 million (Aus.) to balance the share of gas taken by the joint venture partners from the project.

The deal comes just ahead of Origin’s plans to sell off Lattice either as an initial public offering or a trade sale and is seen as way of improving the portfolio of Lattice as an attractive investment.

The sale gives Lattice 95% interest in the Otway project and 100% in the two exploration permits. It also boosts Lattice’s share of 2P gas reserves in the Otway to 237 petajoules from 156 petajoules.

It is likely that Lattice or its new owner will sell down its stake in the project prior to expected new capital expenditure in 2020-21.

Final bids for Lattice from interested trade parties were due in mid-September, but the date is now expected to move out to the end of the month to give bidders more time to digest the Benaris transaction.

The acquisition is conditional, however, on Origin proceeding with the sale of Lattice.

The other interest holder in the Otway gas project is Japan’s Toyota Tsusho Corp., which holds 5%.