ConocoPhillips completes purchase of additional 10% shares in APLNG
ConocoPhillips announced through its Australian subsidiary that it has completed the purchase of an additional 10% shareholding interest in Australia Pacific LNG (APLNG) from Origin Energy for $1.645 B. After customary closing adjustments, cash paid for the additional interest is approximately $1.4 B. 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% interest in APLNG, with Origin Energy and Sinopec owning 27.5% and 25% interests, respectively. Based on the new 47.5% ownership interest and a full-year average Brent price of $78 per bbl, ConocoPhillips would expect approximately $1.8 B of distributions from APLNG in 2022, with roughly $500,000 expected in the 1Q.
“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 CEO. “With the global energy transition underway, we expect LNG to play an increasingly important role, as it is lower in GHG emissions intensity than other alternatives. At the same time, this strategic acquisition of an additional shareholding interest in APLNG further diversifies our product mix while lowering our aggregate decline rate.”
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