A combined Hong Kong and Beijing team has advised Sinopec International Petroleum Exploration & Production Corporation (“SIPC”) on the subscription through its subsidiary for a 15% ownership interest in Australia Pacific LNG Pty Ltd. ConocoPhillips and Origin Energy each retain a 42.5% ownership interest in the Australia Pacific LNG.
The subscription agreement was signed and announced on 21 April 2011. The transaction is valued at approximately US$1.5 billion. The agreement is subject to approvals by the Chinese and Australian governments, the Foreign Investment Review Board and on Australia Pacific LNG reaching a final investment decision.
Australia Pacific LNG is the leading producer of coal seam gas (CSG) in Australia and holds the country’s largest CSG reserves position. It is proposing to develop a multi-billion dollar, world-class CSG to LNG export project in Queensland. The project will develop Australia Pacific LNG’s gas fields in the Surat and Bowen basins in south western and central Queensland.
The Herbert Smith team was led by the head of Asia energy practice Anna Howell, with senior associate Monica Sun and associates Michele Ryan, Hao Su and Anna Giudice. Senior associates Hilary Lau and Phoebe Yuen provided additional support.
Anna Howell commented :
“ The successful signing of this acquisition is a milestone transaction for both the Sinopec Group and Australia Pacific LNG. In the last six months we have seen significant China outbound M&A activity particularly in the energy sector and this will continue into 2011 .”
SIPC’s Australian counsel was Blake Dawson. Australia Pacific LNG Pty Ltd was advised by Clayton Utz.
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Source: Herbert Smith, May 3, 2011;