October 31, 2008
AGL Energy to Divest Oil and Gas Interests in Papua New Guinea
Australia-based AGL Energy has executed sale and purchase agreements for all of its oil and gas exploration and production interests in Papua New Guinea, which include a 3.6% interest in the PNG LNG project.
Net proceeds as a result of the sale, after closing out oil hedges, will be approximately A$1.1 billion. No capital gains tax will be payable in either Papua New Guinea (PNG) or Australia on proceeds from the sale.
Michael Fraser, managing director of AGL, said: "This is an excellent outcome for AGL, particularly in light of current global market conditions. Importantly, the PNG sale is a milestone for us as it finalizes the non-core asset sale program we commenced late last year and again demonstrates the company's ability to deliver on its strategy."