Oz Beach Completes Otway Sale

Australian Beach Energy May 31 said it has completed the sale of 40% of its Victorian Otway interests to O.G. Energy.

The sale was first announced in October last year. The deal with O.G. Energy, a division of Ofer Global, which is a private portfolio of international businesses, comes at a price of A$344 million ($238mn) in cash. Beach will remain operator of the assets.

Beach said it received a completion payment of A$262mn on May 31 comprising the purchase price of $344mn less adjustments of $82mn. These adjustments reflect O.G. Energy’s share of net cash flow from these assets between the effective date of the transaction and the completion date, the company said.

“We are excited to formally welcome O.G. Energy into our Victorian Otway Basin assets. Having a fully-aligned partner on board is an important step in Beach’s plans to develop more gas supplies for the east coast gas market,” Beach managing director Matt Kay said.

Additionally, Beach has agreed to transfer to O.G. Energy, for consideration and subject to customary regulatory approvals, a 40% interest in the La Bella gas field, ensuring alignment across its offshore Otway portfolio.