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Origin completes interest acquisition

LNG Industry,

Origin Energy Ltd said it had acquired a 40% interest from Karoon Gas in two offshore exploration permits (WA- 315-P and WA-398-P) in Western Australia's Browse Basin.

Under the terms of the transaction, Origin paid a US$ 600 million cash consideration to Karoon with additional payments of US$ 75 million payable upon a project Final Investment Decision (FID) and US$ 75 million payable on first production. An additional payment of up to US$ 50 million will be payable on first production if 2P reserves at the time of FID reach stipulated thresholds.

Origin's acquisition of the permits, which contain large and prospective offshore gas fields such as the Poseidon discovery, allows the company to establish a strategic position in one of Australia's largest recent offshore gas discoveries.

LNG opportunity

At the time of signing a sales and purchase agreement with Karoon, Origin said that the Poseidon field’s resources may be monetised by transporting natural gas to LNG production facilities in Darwin or through a standalone floating LNG facility.

The acquisition complements Origin's recent farm-ins in the Cooper and Beetaloo basins and the awarding of new exploration acreage to the company in the Bonaparte Basin.

Location of WA-315-P and WA-398-P

Adapted from press release by Ted Monroe

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