ConocoPhillips has announced that through its Australian subsidiary, it has completed the purchase of an additional 10 percent shareholding interest in Australia Pacific LNG from Origin Energy for $1.645 billion.
After customary closing adjustments, cash paid for the additional interest is approximately $1.4 billion. The transaction resulted from the exercise of ConocoPhillips’ preemption right and is funded from cash on the company’s balance sheet.
The ConocoPhillips subsidiary now owns a 47.5 percent interest in APLNG, with Origin Energy and Sinopec owning 27.5 percent and 25 percent interests, respectively. Based on the new 47.5 percent ownership interest and a full-year average Brent price of $78 per barrel, ConocoPhillips would expect approximately $1.8 billion of distributions from APLNG in 2022, with roughly $0.5 billion expected in the first quarter.
“We are pleased to acquire this additional stake in APLNG, which throughout its six years of operations has served as a reliable and efficient supplier of natural gas to the growing Asia Pacific market, and to Australia’s East Coast gas market,” said Ryan Lance, ConocoPhillips chairman and chief executive officer.
For more information visit www.conocophillips.com