ORIGIN ENERGY LIMITED Under the terms of the agreement, Benaris' 29.23 per cent interest in the neighbouring T/30P Exploration Joint Venture and VIC/P43 Exploration Joint Venture (Exploration Joint Ventures) will also be acquired.
On completion of the acquisitions, Origin will pay Benaris $190 million, adjusted to reflect an effective date of 1 July 2017. The acquisitions will increase Lattice Energy's interest in the Otway Gas Project Joint Venture to 95 per cent and the Exploration Joint Ventures to 100 per cent.
Origin has the right to acquire the assets, although has no obligation to do so if the divestment of Lattice Energy does not proceed. The acquisitions are subject to certain conditions and also Toyota Tsusho pre-emptive rights for the Otway Gas Project Joint Venture.
Under a separate agreement, Lattice has agreed to pay Benaris $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 joint venture matters. The agreement will increase Lattice Energy's 2P reserves in the Otway Gas Project Joint Venture by 11.89 PJ. The payment is not conditional on the divestment of Lattice Energy.
The alignment of interests in the joint venture and the simplification of the ownership structure is consistent with Origin's preparations to divest Lattice Energy. These transactions, once completed, will help facilitate the future development of the joint ventures.
Current Otway JV ownership
| Otway Gas Project JV | T/30P Exploration JV | T/30P Exploration JV | |
|---|---|---|---|
| Lattice Energy* | 67.23% | 70.77% | 70.77% |
| Benaris | 27.77% | 29.23% | 29.23% |
| Toyota Tsusho Corporation | 5% | N/A | N/A |
New Otway JV ownership if completion occurs
| Otway Gas Project JV | T/30P Exploration JV | T/30P Exploration JV | |
|---|---|---|---|
| Lattice Energy* | 95% | 100% | 100% |
| Benaris | N/A | N/A | N/A |
| Toyota Tsusho Corporation | 5% | N/A | N/A |
Lattice Energy Otway Basin reserves and resources as at 30 June 2017 (PJe), adjusted to illustrate impact of transactions
| 1P | 2P | 3P | 2C | |
|---|---|---|---|---|
| Current | 91 | 156 | 211 | 108 |
| Post rebalancing | 103 | 168 | 223 | 108 |
| Post rebalancing and acquisition | 145 | 237 | 315 | 153 |
* Lattice Energy is a wholly owned subsidiary of Origin Energy Limited.
Increased interest in the Otway Gas Project will be acquired from Benaris International Pty Ltd. Increased interest in exploration assets will be acquired from Benaris Exploration (Otway) Pty Ltd.
Otway Gas Project JVT/30P Exploration JVT/30P Exploration JVLattice Energy*67.23%70.77%70.77%Benaris27.77%29.23%29.23%Toyota Tsusho Corporation5%N/AN/A
Origin Energy Limited published this content on 11 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 September 2017 06:33:03 UTC.
Original documenthttps://www.originenergy.com.au/about/investors-media/media-centre/origin-secures-increased-interest-in-otway-for-lattice-energy.html
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