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ConocoPhillips exercises pre-emption rights

ConocoPhillips exercises pre-emption rights

ConocoPhillips has exercised its pre-emption rights regarding Origin’s sale of the 10 per cent shareholding in Australia Pacific LNG to EIG for $2.12 billion.

ConocoPhillips’ acquisition will be subject to the Foreign Investment Review Board approval.

Origin and ConocoPhillips will continue to hold their existing seats on the board of Australia Pacific LNG.

The company’s function as an upstream operator, responsible for upstream exploration, development, and production, will not alter as a result of the divestment.

The Origin guarantee to fulfil any cash calls made by Australia Pacific LNG in respect of the 10 per cent shareholding will cease to apply if ConocoPhillips or Sinopec successfully exercise their pre-emptive rights and the transaction with EIG does not go through.

Origin CEO Frank Calabria said there was much value in the transaction.

“Australia Pacific LNG is a world-class LNG asset and the value realised from this transaction is due to the hard work and dedication of the joint venture and its shareholders over many years,” Calabria said.

“We look forward to continuing to work with our partners to ensure Australia Pacific LNG maintains its strong performance and can continue to meet the needs of our LNG customers in Asia and to domestic customers as the largest supplier of gas on Australia’s east coast.”

Sinopec, the other shareholder in Australia Pacific LNG, has until 17 December to exercise its respective pro-rata pre-emption rights.

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