ConocoPhillips Seeking to Inherit Upstream Operator Duties of Australian LNG Company

ConocoPhillips' Australian subsidiary intends to become the upstream operator of Australia Pacific LNG (APLNG) once EIG's transaction with Origin Energy has closed. As part of this plan, ConocoPhillips has agreed to acquire an additional 2.49% shareholding interest in APLNG for $0.5 billion, subject to standard adjustments. Presently, ConocoPhillips holds a 47.5% shareholding interest in APLNG and is set to own up to 49.99% after the transaction's completion. However, both the acquisition and operatorship assumption are dependent on EIG closing its deal with Origin. Regulatory approvals and customary closing conditions are required for EIG's transaction and ConocoPhillips' shareholding acquisition.

ConocoPhillips' senior vice president, Global Operations, Andy O'Brien, said APLNG is the primary natural gas supplier to the East Coast domestic market in Australia, contributing between 20-30% of its total demand.