PERTH (miningweekly.com) – Energy major Origin Energy has struck a A$231-million deal to sell its Ironbark project to Australia Pacific Liquefied Natural Gas (APLNG) – a joint venture in which it is a 37.5% shareholder with ConocoPhillips (37.5%) and Sinopec (25%).
Origin said on Tuesday that it expected to book a non-cash post-tax impairment of A$34-million in the interim financial results, based on the sales price for Ironbark. This would be offset by a A$68-million benefit to tax expenses.
“The sale represents the best way for Origin to maximise value from Ironbark. APLNG is able to realise additional value for the asset by utilising its existing nearby gas and water processing infrastructure to efficiently bring the gas to market,” said Origin CEO Frank Calabria.
“Origin will derive value from the development of the Ironbark asset through its investment in APLNG,” he added.
In its role as upstream operator for APLNG, Origin will be responsible for the development of Ironbark.
The sale was subject to Australian Competition and Consumer Commission approval, as well as foreign investment approvals.