Origin sells upstream arm

Australia

SYDNEY, September 28, 2017 – Australia’s Origin Energy has agreed to sell its upstream business, Lattice Energy, to Beach Energy for AUD 1.59 billion (USD 1.25 billion), Origin announced on Thursday.

The deal includes long-term gas sales agreements that will allow Origin to tap into Beach Energy’s future output, the statement added.

“In signing these agreements today, we have delivered on our commitment to divest Lattice Energy consistent with our plan to simplify the Origin business, reduce debt and improve returns to shareholders,” said Origin CEO Frank Calabria. “Origin and Beach have a long history of working together through joint ventures and existing gas supply arrangements, and we look forward to continuing that relationship as Beach will remain a major supplier of gas to Origin into the future.”

Once the agreement passes regulatory approval, it will be effective July 1, 2017.