Beach Energy has entered into binding agreements with Toyota Tsusho to acquire its interests in the Otway Gas and BassGas projects offshore Australia.
The Otway Gas Project (OGP) includes production from the Thylacine and Geographe offshore gas fields, the Thylacine wellhead platform, and the onshore Otway gas plant.
BassGas includes the Yolla offshore gas field, the BassGas pipeline and onshore Lang Lang gas plant, and various exploration permits and retention licenses.
Beach said on Thursday it would acquire Toyota Tsusho’s five percent stake in OGP and 11.25 percent stake in the BassGas Project for cash consideration, to be funded from Beach’s existing cash reserves.
“The purchase price remains confidential, however, it is consistent with pricing parameters of recent comparable transactions within the sector,” the company said.
Completion of the transaction is expected in early 2018 with an effective date of January 1, 2017, for the OGP interest and July 1, 2017, for the BassGas interests.
Assuming successful completion of the acquisition of Lattice Energy and the concurrent acquisition of Benaris’ 27.77% interest in OGP, Beach will hold a 100% interest in OGP, a 53.75% interest in BassGas producing assets, and a 50.25% in BassGas exploration permits.
To clarify, Origin Energy entered into an agreement with Benaris in September to enable its subsidiary, Lattice Energy, to acquire Benaris’ 27.77 percent interest in the Otway Gas Project in Australia. Later that month, Origin decided to sell the subsidiary to Beach Energy for A$1.59 billion (US$1.22 billion, at current rates).
“Full control of OGP will allow Beach to optimise future work programs efficiently as it progresses with the next phase of activities in the region. The OGP gas fields are currently supplying approximately 100 TJ/d into the Victorian gas market as well as 2,500 boe/d of LPG and condensates. The OGP infrastructure is strategically important and currently also processes gas from the 100% Lattice Energy owned Halladale and Speculant gas fields. Spare gas processing capacity is also available for potential future expansions due to Beach or third-party exploration or development activities,” Beach added.
Beach Energy CEO, Matt Kay, said: “The acquisition of Toyota Tsusho’s interests in the Otway and BassGas projects is of strategic benefit to Beach. Full ownership of the Otway Gas Project delivers additional flexibility and control over future work programs. It also allows the potential introduction of new joint venture partners and ensures efficient management of joint venture and other commercial arrangements.”