Chemicals

ConocoPhillips increases stake in Australian LNG project

ConocoPhillips company based in the USA purchased an additional 10% stake in the Australia Pacific LNG (APLNG) project from Origin Energy for $ 1.645 billion.

ConocoPhillips said it paid out about $ 1.4 billion in cash for additional interest in the project after the usual closure adjustments.

For this deal, ConocoPhillips exercised its preemptive right to increase its stake in the APLNG project from 37.5% to 47.5%.

The lead was the answer a $ 1.59 billion deal signed by Origin Energyin October 2021 to sell a 10% stake in the project to US energy investor EIG.

ConocoPhillips Chairman and CEO Ryan Lance said: “We are excited to acquire this additional stake in APLNG, which for six years has served as a reliable and efficient supplier of natural gas to the growing Asia-Pacific market and eastern Australia. Coastal gas market.

“We expect LNG to play an increasingly important role in the global transition to energy, as its GHG emissions are lower than those of other alternatives.

“At the same time, this strategic acquisition of an additional stake in APLNG further diversifies our product range while reducing the overall level of decline.”

In 2021, ConocoPhillips production under the APLNG project was 113,000 barrels of oil equivalent per day.

Origin Energy’s stake in the project has been reduced to 27.5% and Sinopec owns 25% of the shares.

Last year Bought ConocoPhillips Perm assets in the US from a subsidiary of Shell Enterprises Royal Dutch Shell for $ 9.5 billion.

The deal included 225,000 clean Shell acres and industrial real estate in Texas, as well as 175,000 barrels of equivalent per day.

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https://www.offshore-technology.com/news/conocophillips-stake-aplng/ ConocoPhillips increases stake in Australian LNG project

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