Origin Energy has entered into an agreement to sell its conventional upstream oil and gas business, Lattice Energy, to Beach Energy for $1.59 billion.
As part of the sale, Origin has secured access to a significant portion to Lattice Energy’s future east coast gas production under long-term gas supply agreements to support its domestic gas business.
“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.
“Importantly, Origin retains access to future Lattice Energy east coast gas production and LPF, to help us continue to meet the energy needs of our domestic customers.”
Origin and Beach have a long history of collaboration through joint ventures and existing gas supply arrangements.
Proceeds from the sale will be used to pay down debt, putting Origin on tract to reduce net debt to below $7 billion by the end of June next year.