Exploration and production company ConocoPhillips (NYSE: COP) announced on Monday that through its Australian subsidiary, it plans to become upstream operator of Australia Pacific LNG (APLNG), a large producer of natural gas in eastern Australia, following the closing of energy and infrastructure investor EIG's transaction with LNG supplier Origin Energy.
ConocoPhillips stated that it has agreed to purchase up to an additional 2.49% shareholding interest in APLNG for USD0.5bn, subject to customary adjustments. The company currently holds a 47.5% APLNG shareholding interest and will own up to 49.99% of APLNG upon closing.
The company added that both the assumption of upstream operatorship and the shareholding acquisition are dependent on EIG closing its transaction with Origin. EIG's transaction with Origin and ConocoPhillips' shareholding acquisition are subject to Australian regulatory approvals and other customary closing conditions.
Andy O'Brien, senior vice president, Global Operations, commented: "We are pleased to have the opportunity to become upstream operator and increase our ownership in APLNG. Origin pioneered the development of coal seam gas into LNG and has contributed to APLNG's status as a safe and dependable LNG supplier. We look forward to leveraging our global upstream expertise to further enhance APLNG as a world-class integrated LNG operation."