Beach Energy withdraws from BMG joint venture

Beach Energy Ltd has released a statement claiming that, alongside Cooper Energy Ltd, it has accepted an offer from the National Offshore Petroleum Titles Administrator (NOPTA) to convert the Basker, Manta and Gummy gas field permits VIC/L 26, 27 and 28 (BMG joint venture) into retention leases. The fields are located in the Gippsland Basin offshore southeast Australia.

In addition to this, Beach Energy has advised Cooper Energy of its withdrawal from the BMG joint venture (JV). This will take effect at the end of the current permit year, and will be carried out in accordance with the joint operating agreement. The 35% non-operated interest that Beach Energy holds in the BMG JV will be given to Cooper Energy for nil consideration.

Beach Energy claims that it has decided to withdraw from the JV because it wants to optimise its portfolio and prioritise capital allocation in the current low oil price market. Therefore, the company does not wish to be included in the proposed appraisal of the Manta gas field.

Beach Energy’s withdrawal from the JV (and the assignment of its interest to Cooper Energy) will take effect on 27 October 2016. However, this is still subject to NOPTA approval and registration.

Edited from press release by David Rowlands

Read the article online at: https://www.lngindustry.com/liquefaction/15042016/beach-energy-withdraws-from-bmg-joint-venture-2290/