Origin announces US$300 million agreement to sell future oil and condensate production

abarrelfullabarrelfull wrote on 21 Dec 2012 08:13
Tags: australia origin trading

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Origin Energy Limited (Origin) today announced it had entered an agreement to sell a portion of its future oil and condensate production at a price linked to the current oil forward pricing curve.

Upon settlement of the agreement, which is scheduled to take place today, Origin will receive US$300 million. These funds will be used to retire existing drawn debt.

Origin Executive Director, Finance and Strategy, Ms Karen Moses said, "Under the terms of the agreement, Origin has agreed to sell a portion of oil and condensate from its Australian East Coast and New Zealand production assets from 2015.

"The agreement allows Origin to realise value today from its future oil and condensate production, which is a by-product of the company's core gas production business.

"The transaction is consistent with Origin's strategy to identify new pathways to monetise the company's diverse and flexible portfolio of fuel resources. Further, it actively demonstrates Origin's ongoing focus on maximising cash flow from our existing business," Ms Moses said.

Goldman Sachs is a counterparty in connection with the transaction.

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