ConocoPhillips halts $2.12bn APLNG deal
PERTH (miningweekly.com) – Energy major ConocoPhillips has exercised its pre-emptive rights in relation to ASX-listed Origin’s sale of a 10% interest in the Australia Pacific liquefied natural gas (LNG) project.
Origin in October announced it had struck a $2.12-billion agreement with global energy investor EIG to sell a 10% stake in the APLNG project, with the company saying at the time that the sale would allow Origin to crystalise some of the significant value created in APLNG, while retaining upside to further value creation through a continuing substantial shareholding.
Origin said on Thursday that ConocoPhillips’ acquisition of the 10% interest would be subject to a review by the Foreign Investment Review Board.
The other shareholder in the APLNG, Sinopec, has until December 17 to exercise its respective pro-rata pre-emption right.
“APLNG is a world-class LNG asset and the value realised from this transaction is due to the hard work and dedication of the joint venture and its shareholders over many years,” said Origin CEO Frank Calabria.
“We look forward to continuing to work with our partners to ensure APLNG maintains its strong performance and can continue to meet the need for our LNG customers in Asia and to domestic customers as the largest supplier of gas on Australia’s east coast.”
Origin and ConocoPhillips will retain their existing seats on the APLGN board, and Origin’s divestment would also not change the company’s role as upstream operator.
If ConocoPhillips or Sinopec successfully exercise their pre-emptive rights and the transaction with EIG does not proceed, the Origin guarantee to satisfy any cash calls made by APLNG in respect of the 10% shareholding will cease to apply.
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