Origin Energy advised that the Subscription Agreement facilitating the acquisition by Sinopec of a 15% ownership interest in Australia Pacific LNG Pty Ltd ("Australia Pacific LNG") completed Tuesday.
In addition, all conditions precedent have now been met for the sale of 4.31 million tonnes of LNG per annum by Australia Pacific LNG to Sinopec, commencing in 2015.
Australia Pacific LNG received US$1.765 billion for the 15% ownership interest. As a consequence, ConocoPhillips' and Origin Energy's ownership interest in Australia Pacific LNG has been diluted to 42.5% each.
This investment by Sinopec provides a net reduction in funding requirements of US$750 million to each of Origin and ConocoPhillips (being 42.5% of US$1.765 billion).
Origin Managing Director and Chairman of Australia Pacific LNG, Mr Grant King said, "We officially welcome Sinopec to Australia Pacific LNG as a shareholder and foundation customer. We look forward to working alongside ConocoPhillips and Sinopec to deliver the Australia Pacific LNG project, drawing on the extensive experience and capabilities within the joint venture in CSG production, development and operation of LNG facilities."
1In calendar year 2015, it is expected cargoes will be delivered at a pro rata rate of 2.5 million tonnes per annum.