Origin Energy acquires $190m stake in Otway gas project

Otway gas plant, Victoria

Origin Energy’s oil and gas division Lattice Energy has secured a $190 million deal with exploration company Benaris International to acquire a 27.7 per cent interest in the Otway gas project, increasing the company’s stake to 95 per cent.

Otway, a joint venture involving two offshore fields in southern Australia, commenced production in 2007 following the initial discovery of natural gases in 2001.

The project involves the development of two gas fields: the remote Thylacine platform in Tasmanian waters and the Geographe field in Victorian waters.

Combined, the project is capable of producing an average of 60 PJ of gas per annum, representing significant investment for the region.

Origin’s investment in Benaris is preparation for its upcoming divestment of Lattice, a newly coined subsidiary dedicated to the oil and gas industry.

The deal will also increase Lattice’s interest in Exploration Joint Ventures to 100 per cent should the company’s divestment proceed.

Benaris has also made a separate deal with Lattice for the purchase of 11.89 PJ of reserves for $60 million, as part of continued investment into the project.