Oil and Gas News

Orbost Gas Processing Plant transaction complete

OGPP apa group

Cooper Energy has announced the completion of its acquisition of the Orbost Gas Processing Plant from APA Group.

APA Group will continue to operate the plant on behalf of Cooper Energy under a transactional services agreement until the plant’s major hazard facilities license is transferred to Cooper Energy.

The acquisition costs between $270 million and $330 million via four instalments.

Additionally, Cooper Energy will undertake a fully underwritten $244 million equity offering comprising of an $84 million placement to institutional investors and a 2-for-5 accelerated, non-renounceable entitlement offer to raise a total of $160 million.

The upfront payment to APA Group is set to be $210 million followed by a series of deferred payments. The first post-completion payment of $40 million will be provided within the initial 12 months, by the date on which ownership of OGPP transfers from APA to Cooper Energy.

A second post-completion payment of between $20 million and $40 million within 24 months of completion must also be met.

Lastly, the third post-completion payment of up to $40 million will be acquired by APA within 36 months of completion.

The final amounts of the second and third post-completion payments are subject to post completion plant performance and as such will be calculated once APA ceases operating the OGPP.

During this period there will be continuity of key people, systems and processes under Cooper Energy’s integration plan.

Completion of Cooper Energy’s proposed acquisition of the vacant land immediately adjacent to the plant — comprised of approximately $2 million of the total purchase price — is anticipated to occur once the ACCC has completed its assessment of this component of the transaction.

The acquisition of the Orbost Gas Processing Plant from APA Group was initially announced on 20 June 2022.

Subsequent to the acquisition, Cooper Energy will operate three gas fields and two gas plants supplying domestic gas into the highly attractive South-east Australian gas market.

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