Origin Energy Ltd has announced that the Subscription Agreement facilitating the acquisition by Sinopec of an additional 10% in Australia Pacific LNG Pty Ltd (Australia Pacific LNG) has been completed.
Sinopec's shareholding in Australia Pacific LNG has now increased from 15% to 25%. As a consequence, ConocoPhillips and Origin Energy's shareholding in Australia Pacific LNG has been diluted from 42.5 per cent to 37.5 per cent each.
Sinopec's additional equity subscription provides Australia Pacific LNG with a net payment of US$1.4 billion for value determined as at 1 January 2011. That amount was adjusted for Sinopec's share of capital expended since that date, resulting in Sinopec injecting a total of approximately US$2.1 billion into Australia Pacific LNG. These funds will be used to meet project expenditure before any additional funding is required from Origin, ConocoPhillips and Sinopec.
In addition, all conditions precedent have been met for the supply of an additional 3.3 million tpy of LNG to Sinopec, bringing the total LNG sales to Sinopec to 7.6 million tpy, commencing in 2015.
Adapted from press release by Peter Farrell.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/12072012/sinopec-increase-ownership-in-australia-pacific-lng/