Oil giant Woodside Petroleum Ltd
(ASX:WPL) says it has agreed to sell its 51.55 per cent interest in the Otway Gas Project in Victoria to integrated energy company Origin Energy Ltd
(ASX:ORG).
Origin Energy is an existing joint venture partner in the Otway project, holding a 30.75 per cent interest.
Origin is to purchase Woodside’s interest in the Otway Basin offshore and onshore facilities and permits for a total of $712.5 million.
Following completion of the transaction Origin will become operator of the Otway project subject to joint venture and regulatory approval.
Origin managing director Grant King says the acquisition is to be funded from existing corporate capacity with the transaction expected to be earnings accretive from the first full financial year following completion.
Woodside says the transition of operatorship is targeted to occur by the second quarter of calendar 2010.
Woodside Petroleum reported net profit of $1.786 billion in 2008 its best in five years, and Origin Energy’s best net profit over the last five years was in 2009 recording close to $7 billion.
