MEO Australia, the independent oil and gas explorer agreed to assign its 50 percent interest in the WA-454-P exploration permit, in the Bonaparte Gulf, offshore northern Australia to Origin Energy.
MEO initially sought an additional partner for the WA-454-P to minimize its remaining exposure to overall exploration and drilling costs, however, due to the current depressed farm-out market, it was unsuccessful.
The company noted in its statement that the exploration permit no longer matched the company’s strategic objectives, that have turned to the lower cost onshore projects.
Under the agreement, the assignment will be dated back to December 2015, and adding to the original farm-out agreement for which Origin paid A$5.6 million in 2013-2014, Origin now owns 100 percent of the interest in the permit.
WA-454-P contains the Marina-1 gas discovery and the approved NEGI pipeline provides the future physical capability to supply east coast as well as north Australian LNG projects.
LNG World News Staff