Origin completes acquisition of 2 permits in WA' s Browse basin from Karoon
SYDNEY, Australia -- Origin Energy Limited (Origin) stated that it had completed the acquisition of Karoon Gas' s (Karoon) 40% interest in two offshore exploration permits (WA- 315-P and WA-398-P) in Western Australia' s Browse Basin.
Under the terms of the transaction, Origin has paid Karoon a $600 million cash consideration with additional payments of $75 million payable upon a project Final Investment Decision (FID) and $75 million payable on first production. A further payment of up to $50 million will be payable on first production if 2P reserves at the time of FID reach certain thresholds.
Origin' s acquisition of the permits, which contain large and prospective offshore gas fields such as the Poseidon discovery, allows the company to establish a strategic position in one of Australia' s largest recent offshore gas discoveries.
The acquisition complements Origin' s recent farm-ins in the Cooper and Beetaloo basins and the awarding of new exploration acreage to the company in the Bonaparte Basin.