Under the terms of the transaction, Origin Energy has paid Karoon $600m in cash for the acquisition of gas exploration interests.
Additionally, further payment of $75m is payable upon a project Final Investment Decision (FID) and $75m payable on first production.
Additional payment of up to $50m will be payable on first production, if 2P reserves at the time of FID reach certain thresholds.
The acquisition of the permits enables Origin to establish a strategic position in one of Australia’s largest recent offshore gas discoveries as well as complements recent farm-ins in the Cooper and Beetaloo basins and the awarding of new exploration acreage to the company in the Bonaparte Basin.
The permits include large and prospective offshore gas fields such as the Poseidon discovery.
