ConocoPhillips To Acquire Additional 2.49% In Australia Pacific LNG From Origin Energy For US$500 Million

Deal In Brief

ConocoPhillips Co, an oil and gas company, has agreed to acquire additional 2.49% stake in Australia Pacific LNG Pty Ltd, a coal seam gas producer, from Origin Energy Ltd, an electricity and natural gas retailer, for a purchase consideration of US$500 million. The transaction has an effective date of July 1, 2022

The APLNG project includes the development of Australia Pacific LNG’s substantial coal seam gas resources in the Surat and Bowen Basins, a 530 km transmission pipeline, and a multi-train LNG facility on Curtis Island, near Gladstone. During 2022, ConocoPhillips production from APLNG was approximately 136 thousand barrels of oil equivalent per day (MBOED)

Following the completion of the transaction, Conocophillips will hold 49.99% stake and Origin Energy will hold 25% stake in Australia Pacific LNG

Morgan Stanley & Co. LLC is serving as ConocoPhillips’ financial advisor for the transaction

Andy O’Brien, senior vice president, Global Operations, said, “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. APLNG is currently the largest supplier of natural gas to Australia’s East Coast domestic market, meeting between 20-30% of its total demand. It will continue supplying customers in China and Japan with reliable energy that is lower in GHG intensity than other fossil fuel alternatives, and thus help meet energy transition pathway demand for years to come.” The transaction is expected to close in early 2024, subject to Australian regulatory approvals and other customary closing conditions.

Deal Value (US$ Million)	500
Deal Type	Acquisition
Sub-Category	Minority Acquisition
Deal Status	Announced: 2023-03-27

Deal Participants

Target (Company)	Australia Pacific LNG Pty Ltd
Acquirer (Company)	ConocoPhillips
Vendor (Company)	Origin Energy Limited

Deal Rationale

The transaction will enable Conocophillips to further strengthen its position in Australia Pacific LNG project.

% Acquisition

2.49%

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