October 24, 2008

ConocoPhillips to Acquire 50% Interest in CSG-to-LNG JV With Origin

Origin Energy has announced that ConocoPhillips has received approval from the Foreign Investment Review Board to acquire a 50% share of a coal seam gas-to-liquefied natural gas joint venture with Origin. The transaction is now unconditional.

In consideration for its interest in the joint venture (JV) ConocoPhillips will provide an additional fixed contribution of A$1.15 billion to carry Origin's share of costs to final investment decision (FID) expected by 2010-end; and additional payments of A$500 million at the point that each of the four proposed liquefied natural gas (LNG) trains is approved, to partly carry Origin's share of costs.

The Origin Group will receive an up-front payment of A$5 billion upon settlement of the transaction. Given the size and nature of the transaction, the settlement will take place over two consecutive business days and is expected to be completed in approximately one week's time.