Sydney-based Origin Energy, the holder of a 37.5 percent stake in the Australia Pacific LNG project, has completed the A$1.59 billion ($1.24 billion) sale of its conventional upstream oil and gas business, Lattice Energy, to Beach Energy.
To remind, the deal was announced back in September 2017.
“After adjusting for settlement of the acquisition by Lattice Energy of Benaris’ interests in the Otway basin (A$190 million), transaction costs, adjustments and taxes, the balance of the sale proceeds will be used to close out of oil forward sale agreements (A$266 million) and pay down debt (approximately A$1 billion),” Origin said.
As a result of this transaction, Origin expects to record accounting charges of approximately A$220 – $240 million, primarily comprising a non-cash post-tax impairment charge of $170 – $180 million as a result of recognising Lattice Energy earnings from 1 July 2017 up to the 31 January 2018 completion date, it said.