Australia’s Origin Energy will book a A$1.89 billion ($1.45 billion) charge in its half-year results, including more than $1 billion on its stake in the Australia Pacific LNG project.
The write-down has come ahead of Origin’s first half-year results under the helm of new CEO Frank Calabria, which are to be reported on Thursday.
Origin cited the lower oil price, the foreign exchange rate of the Australian dollar, discount rates and costs for the A$1.89 billion write-down.
Besides the APLNG project, Origin expects to impair its investments in the Browse Basin $578 million, NewCo conventional exploration assets $170 million and Energía Austral SpA $114 million.
Australia Pacific LNG is a joint venture between ConocoPhillips, that is the operator with a 37.5 percent stake, Origin holds a 37.5 percent stake and Sinopec owns a 25 percent stake.
To remind, Origin is preparing to spin off its conventional gas exploration and production arm later this year. The company plans to divest its conventional oil and gas assets via initial public offering to cut debt and to focus on its energy markets and LNG business.
LNG World News Staff