Australian oil and gas company Beach Energy and Eyal Ofer’s OG Energy Holdings, a member of the Ofer Global group of companies, have entered into an agreement under which OG Energy will acquire 40% of Beach’s Victorian Otway assets for a cash consideration of A$344m ($243.5m).
Image:. Beach to sell 40% stake in Victorian Otway to OG Energy for $243m. Photo: courtesy of Zbynek Burival on Unsplash.
Beach and OG Energy, through their subsidiaries Lattice Energy and OGOG (Otway), have signed a sale and purchase agreement under which OGOG will acquire a 40% interest in Beach’s nearshore and offshore Victorian Otway Basin interests.
Beach will continue to be the operator of the assets.
The Otway parcel includes the Otway Gas Plant, gas fields Geographe, Thylacine, Halladale, Speculant and Black Watch, as well as exploration prospects Enterprise and Artisan.
Beach CEO Matt Kay said that the transaction aligns with Beach’s previously stated ambitions.
He said: “We are delighted to have OG Energy join us in our Victorian Otway assets.
“This transaction introduces a fully-aligned partner to support the rapid exploration and development of our offshore Victorian acreage.
“Securing an excellent development partner for the Otway gas fields is a pivotal step towards creating new supply to Australia’s East Coast gas market.”
Effective from 1 July 2018, the completion of the sale will be subject to customary conditions, including FIRB approval.
Upon completion of the conditions, four new joint ventures – Otway, HBWS, Enterprise and Artisan – will be formed. Beach or its wholly owned subsidiaries will hold a 60% interest in each joint venture and remain as operator, while OGOG will hold 40% stake.
Interests involved in the sale process are: Otway gas plant and all associated infrastructure and pipelines; VIC/L1(V) permit, covering the Halladale, Speculant and undeveloped Black Watch gas and liquids fields; T/L2 and T/L3 permits, covering the Thylacine gas and liquids field; VIC/L23 permit covering the Geographe gas and liquids field; VIC/P42(V) permit covering the nearshore Enterprise exploration prospect; VIC/P43 permit covering the offshore Artisan exploration prospect; and assignment of interests in Beach’s gas and liquids sale agreements, where possible.