Origin buys Otway gas project stake from Woodside

Origin Energy Ltd., Sydney, has acquired 51.55% interest in the Otway gas project in western Victoria from joint venture partner Woodside Petroleum Ltd., Perth, for $712.5 million (Aus.).

Nov 3rd, 2009

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Nov. 3 -- Origin Energy Ltd., Sydney, has acquired 51.55% interest in the Otway gas project in western Victoria from joint venture partner Woodside Petroleum Ltd., Perth, for $712.5 million (Aus.).

The sale includes Woodside’s interest in both the offshore facilities at Thylacine and Geographe fields, the pipeline to shore, and the shore-based processing facilities near Port Campbell. Origin will fund the acquisition from its corporate cash reserves.

Origin says increasing its interest from its former 30.75% will provide additional earnings from natural gas sold under existing long-term contracts to TRUenergy Pty. Ltd. as well as from LPG and condensate sold from the liquids-rich gas stream.

The transaction is effective from July 1 and will be completed next month, subject to preemptive rights under the JV agreement.

Other JV partners are Benaris International 12.7% and CalEnergy Gas 5%.

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