PERTH (miningweekly.com) – Energy major Origin Energy will pay A$190-million to increase its interest in the Otway gas project joint venture (JV), in Victoria.
The ASX-listed company on Monday announced that it would acquire JV partner Benaris’s 27.77% interest in the project, as well as its interest in exploration permits in the region.
Origin told shareholders that the acquisition would increase its subsidiary Lattice Energy’s interest in the Otway gas project JV to 95%, and the exploration JV to 100%.
Under a separate agreement, Lattice has also agreed to pay Benaris A$60-million for 11.89 PJ of reserves to rebalance the share of gas between the parties, relating to the historical lifting of production at Otway, and to reach agreement on other JV matters.
The transaction would increase Lattice Energy’s Otway Basin 1P reserves from 91 PJ to 145 PJ and its 2P reserves from 156 PJ to 237 PJ.
Origin has previously tipped the divestment of the Lattice Energy upstream business, and said on Monday that the company would have the right, but not the obligation, to acquire the Otway gas power JV assets if the divestment of Lattice Energy did not proceed.