By OGJ editors
HOUSTON, Mar. 11 -- Shell Development (Australia) Pty. Ltd., has sold its interests in Laminaria and Corallina oil fields, adjacent AC/P8 exploration acreage, and the Northern Endeavour floating production, offloading, and storage vessel (FPSO) to Woodside Energy Ltd. and Paladin Oil & Gas (Australia) Pty. Ltd. under separate agreements. The fields are on Production License AC/L5 in the Timor Sea, 550 km northwest of Darwin off northern Australia.
The sales are pending Australian regulatory approval, and the combined sales price of $140.2 million is subject to adjustments for working capital and cash flow movements between the effective date and the expected close date in April.
In one agreement Woodside, operator of the Laminaria-Corallina project, will purchase an additional 16.67% interest in PL AC/L5 and will gain an additional 16.67% interest in the FPSO.
Paladin will acquire Shell's remaining 8.33% interests in PL AC/L5 and Shell's 15% interest in the adjacent exploration permit AC/P8.
Following the purchase, Woodside will own 66.67% of Corallina field and the Northern Endeavour, as well as a 59.9% interest in Laminaria field, which is unitized over PL AC/L5 and WA-18-L. Paladin's fixed interest in Laminaria field will rise to 40.1% from 32.6%, and its interest in Corallina field and the Northern Endeavour will rise to 33.33% from 25%.
Woodside will drill an infill appraisal well in Laminaria field in the second quarter and an exploration well on the AC/P8 permit later this year. It has the option to buy Paladin's interest in the Northern Endeavour at the end of the project.
Laminaria and Corallina fields, discovered in 1994 and 1995, respectively, averaged 31,000 b/d of gross oil in 2004 (OGJ Online, Nov. 15, 2004).
