ConocoPhillips (COP) and Origin Energy (OGFGF.PK) are looking to sell a $3B 15% stake in their $20B LNG project in Queensland in Australia. Origin said in July that it intends to reduce its holding to 30% from 37.5%, with Bloomberg reporting that ConocoPhillips is now set to do the same. Meanwhile, Sinopec (SNP) is paying $2.1B to raise its stake to 25% from 15%.
Sinopec (SNP) will pay $1.1B to take an additional 10% stake in the Australia Pacific LNG project, bringing its total equity in the $20B project to 25%. The deal reduces the equity share of ConocoPhillips (COP) and Origin Energy (OGFGF.PK) to 37.5%.
Sinopec (SNP) agrees to buy up to 4.3MMT/year of LNG for 20 years from a proposed Conoco (COP) and Origin (OGFGF.PK) Australian project. The inking of a major customer could be the straw that allows investment in the project to move forward. AH: SNP +2.9%. Premarket: COP +1.5%.
Australia's Origin Energy (OGFGF.PK) points to an $8B joint venture with ConocoPhillips (COP) as evidence that "more than justifies" its rejection of BG Group's (BRGYY.PK) hostile takeover effort. Origin shares closed +12.8% in Australia.