AOC establishes JV company to pursue LNG opportunities
Australian Oil Company formed Cal LNG, a joint venture company which is pursuing the development of an LNG export and domestic supply facility on the west coast of the USA.
Project sites have been identified and negotiations for Cal LNG to secure a site are progressing. Cal LNG has been incorporated in the United States and is a joint venture between AOC (42%), Xstate Resources (18%) and private oil and gas company Blue Sky E&P Holdings (40%).
Whilst AOC’s immediate priority is to progress the exploration and development of its Alvares and Dempsey prospects, it will concurrently advance the development of Cal LNG, it said in a statement.
AOC’s Managing Director Gary Jeffery commented: “The formation of Cal LNG adds another growth platform for AOC in California and we are committed to building a multi-tier energy business focused on this market. Further strengthening our view is the fact that there are limited LNG export facilities on the West Coast of the United States and we intend to capitalise on this.”
The sites that the company has identified are situated in locations that give us flexibility to pursue LNG export opportunities and growing US LNG transport markets, added Jeffery.
Jeffery said AOC was in advanced discussions with a number of potential parties regarding farm-out arrangements for the Dempsey and Alvares prospects and expects to be in a position to update shareholders on the outcome of these negotiations in coming weeks.
Press Release; Image: AOC