Origin Energy Limited (Origin) advises it has received notice that ConocoPhillips has exercised its pre-emption rights in relation to Origin’s sale of a 10 per cent shareholding in Australia Pacific LNG to EIG for $2.12 billion, which was announced on 25 October 2021.
The other shareholder in Australia Pacific LNG, Sinopec, has until 17 December to exercise its respective pro-rata pre-emption rights.
ConocoPhillips’ acquisition will be subject to approval by the Foreign Investment Review Board.
Origin and ConocoPhillips will retain their existing seats on the Australia Pacific LNG board. Origin’s divestment also does not change the company’s role as upstream operator, responsible for the upstream exploration, development, and production activities. If ConocoPhillips and/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 Australia Pacific LNG in respect of the 10 per cent shareholding will cease to apply.
Origin CEO Frank Calabria said “Australia Pacific LNG 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. We look forward to continuing to work with our partners to ensure Australia Pacific LNG maintains its strong performance and can continue to meet the needs of our LNG customers in Asia and to domestic customers as the largest supplier of gas on Australia’s east coast.”
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