Origin Energy Limited has completed the acquisition of Karoon Gas’ 40% stake in two offshore exploration permits (WA- 315-P and WA-398-P) in Western Australia’s Browse Basin.
Under the terms of the transaction, Origin has paid Karoon a US$600 million cash consideration with additional payments of US$75 million payable upon a project Final Investment Decision (FID) and US$75 million payable on first production. A further payment of up to US$50 million will be payable on first production if 2P reserves at the time of FID reach certain thresholds.
Origin’s acquisition of the permits, which contain large and prospective offshore gas fields such as the Poseidon discovery, allows the company to establish a strategic position in one of Australia’s largest recent offshore gas discoveries.
The acquisition complements Origin’s recent farm-ins in the Cooper and Beetaloo basins and the awarding of new exploration acreage to the company in the Bonaparte Basin.
Karoon Gas executive chairman, Bob Hosking, said, “The completion of this transaction allows Karoon to focus on the upcoming appraisal of our Kangaroo oil discovery offshore Brazil and to continue to add value to the company’s extensive exploration acreage elsewhere in Brazil, Peru and in Australia.”