ConocoPhillips’s Australian subsidiary has completed the purchase of an additional 10 per cent shareholding interest in Australia Pacific LNG (APLNG) from Origin Energy for $1.645 billion. Cash paid for the additional interest is approximately $1.4 billion, according to the Journal of Petroleum Technology.
The deal resulted from the exercise of ConocoPhillips’ preemption right to acquire the stake when operator Origin Energy flagged its intention to sell it to investment firm EIG Global Energy Partners for $2.12 billion.
The ConocoPhillips subsidiary now owns a 47.5 per cent interest in APLNG, with Origin Energy and Sinopec owning 27.5 per cent and 25 per cent interests, respectively.
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Based on the new 47.5 per cent ownership interest and a full-year average Brent price of $78/bbl, ConocoPhillips would expect approximately $1.8 billion of distributions from APLNG in 2022, with roughly $0.5 billion expected in the first quarter.
“We are pleased to acquire this additional stake in APLNG, which throughout its 6 years of operations has served as a reliable and efficient supplier of natural gas to the growing Asia Pacific market, and to Australia’s East Coast gas market,” ConocoPhillips chair CEO Ryan Lance said.
“With the global energy transition underway, we expect LNG to play an increasingly important role, as it is lower in greenhouse-gas-emissions intensity than other alternatives. At the same time, this strategic acquisition of an additional shareholding interest in APLNG further diversifies our product mix while lowering our aggregate decline rate.”
