OPIC Australia farms into Carnarvon Bedout subbasin assets

OPIC Australia Pty Ltd., a subsidiary of Taiwan’s national petroleum company, CPC Corp., has agreed to acquire from Carnarvon Energy Ltd., Perth, 10% of Carnarvon’s interest in four Bedout subbasin permits offshore Western Australia.

The permits contain Dorado, Pavo, Roc, and Phoenix discoveries, all operated by Santos Ltd.

Carnarvon will receive total cash consideration of $146 million comprised of an upfront payment of $56 million on transaction completion, plus a carry of $90 million of Carnarvon’s forward expenditure in the permits when a final investment decision (FID) is made for Dorado oil and gas development in new production licence WA-64-L.

Carnarvon will use the cash for its share of Dorado development, as well as towards further exploration and appraisal work on the Pavo oil discovery in adjoining permit WA-438-P. The discovery is being contemplated as an add-on development to Dorado.

With the deal, interests in Dorado will be Santos, 80%; Carnarvon, 10%; and OPIC, 10%. Pavo interests will be Santos, 70%; Carnarvon, 20%; and OPIC, 10%.

Santos this week said FID on Dorado is targeted for 2024.

New interests in the yet-to-be commercialized gas and gas-oil discoveries at Roc (WA-437-P) and Phoenix (WA-435-P) will be Santos; 80%; Carnarvon, 10%; and OPIC, 10%.