Origin Energy divesting upstream business

Australia’s Origin Energy is going to divest its upstream business, to focus on its Energy Markets and Integrated gas businesses.

The company on Tuesday said it would load off its conventional upstream business, serving Australia and New Zealand, via an Initial Public Offering (IPO).

According to Origin, the new company (‘NewCo’) will be a mid-cap upstream exploration and production company listed on the Australian Securities Exchange.

NewCo will include Origin’s interests in the Otway Gas Project, BassGas Project, Kupe Gas Project, and the Perth, Cooper, Bonaparte and Canterbury basins. Origin will retain its interests in Australia Pacific LNG, Ironbark and the Browse and Beetaloo basins.

Origin Chairman Gordon Cairns said the decision to divest was consistent with Origin’s strategy to focus the business, reduce debt and improve returns for shareholders.

“Given Origin’s ability to invest capital in the NewCo assets is constrained, their long term value will be better supported by them being an independent business,” he said.

Origin CEO Frank Calabria, appointed in September, said, “The divestment of Origin’s conventional upstream business will be a major step towards restoring the company’s financial flexibility and is expected to improve Origin’s return on capital.”

NewCo, Origin further said, will have diversified exposure to the Australian east coast, west coast and New Zealand gas markets. It will have a mix of production and exploration assets.

The new company will have an independent Board and a dedicated management team. Origin said it would assist with appropriate transitional services for a limited period, but will not hold an ongoing equity interest in NewCo.

The proposed IPO will not require Origin shareholder approval and a listing of NewCo is targeted for 2017.

Origin has appointed Macquarie Capital and UBS AG, Australia Branch to act as joint financial advisors and joint lead managers in respect of the proposed IPO.

 

Share this article

Follow Offshore Energy Today

Events>

<< Jan 2017 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

CERAWeek 2017

CERAWeek by IHS Markit is the premier annual international gathering of energy industry leaders, experts, government officials…

read more >

Annual Offshore Support Journal Conference, Awards & Exhibition 2017

The 2017 event will see the industry transitioning to a new phase, with new preoccupations, challenges and opportunities. The offshore…

read more >

FPSO Europe Congress 2017

The FPSO Europe Congress is the European edition of the world’s largest FPSO conference and exhibition and will gather senior stakeholders…

read more >

AOG 2017

The Forum will begin directly after the SUT Subsea Controls DownUnder Conference, drawing a wider audience for our suppliers.This event…

read more >

Jobs>

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply