Australia’s power and gas retailer Origin Energy has agreed to sell its Ironbark onshore coal seam gas project to Australia Pacific LNG for A$231 million ($164 million).
The Ironbark project, located in Queensland’s Surat Basin, has 129 PJ of 2P reserves and 192 PJ of 3P reserves.
In August 2018, Origin entered Stage 1 front end engineering design while also assessing alternate strategic options for the asset.
Origin CEO Frank Calabria said, “The sale represents the best way for Origin to maximize value from Ironbark. Australia Pacific LNG is able to realize additional value from the asset by utilizing its existing nearby gas and water processing infrastructure to efficiently bring the gas to market.
“Origin will derive value from the development of the lronbark asset through its investment in Australia Pacific LNG.”
In its role as an upstream operator for Australia Pacific LNG, Origin will be responsible for the development of Ironbark.
Australia Pacific LNG is operated by ConocoPhillips that has a 37.5 percent stake in the project with Origin Energy holding an equal share and Sinopec owning the remaining 25 percent.