Origin Secures Increased Interest in Otway for Lattice Energy

Source Press Release
Company Origin Energy LimitedBenaris International Pty Ltd 
Tags LNG & Gas Storage/Processing, Asset Deals, Deals, Upstream Activities
Date September 11, 2017

Origin Energy Limited (Origin) today announced it has entered into an agreement with Benaris1 to enable Lattice Energy to acquire Benaris' 27.77 per cent interest in the Otway Gas Project Joint Venture. The acquisition is expected to complete when Lattice Energy is divested.

Under the terms of the agreement, Benaris’ 29.23 per cent interest in the neighbouring T/30P Exploration Joint Venture and VIC/P43 Exploration Joint Venture (Exploration Joint Ventures) will also be acquired.

On completion of the acquisitions, Origin will pay Benaris $190 million, adjusted to reflect an effective date of 1 July 2017. The acquisitions will increase Lattice Energy’s interest in the Otway Gas Project Joint Venture to 95 per cent and the Exploration Joint Ventures to 100 per cent.

Origin has the right to acquire the assets, although has no obligation to do so if the divestment of Lattice Energy does not proceed. The acquisitions are subject to certain conditions and also Toyota Tsusho pre-emptive rights for the Otway Gas Project Joint Venture.

Under a separate agreement, Lattice has agreed to pay Benaris $60 million for 11.89 PJ of reserves to rebalance the share of gas between the parties relating to the historical lifting of production at Otway and to reach agreement on other joint venture matters. The agreement will increase Lattice Energy’s 2P reserves in the Otway Gas Project Joint Venture by 11.89 PJ. The payment is not conditional on the divestment of Lattice Energy.

The alignment of interests in the joint venture and the simplification of the ownership structure is consistent with Origin’s preparations to divest Lattice Energy. These transactions, once completed, will help facilitate the future development of these assets.

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