$25 billion APLNG project spared in Origin's mass sell off
ORIGIN Energy is offloading seven of its assets to curb its massive debt, but it's holding on to its Curtis Island APLNG project.
Seven of its oil and gas assets are being bundled together to form a separately listed company, Newco, on the Australian Securities Exchange.
Origin will hold on to its 37.5 per cent stake in the $25 billion export-focused APLNG project in Gladstone.
Recently appointed Origin CEO Frank Calabria said the move would restore the company's financial flexibility and improve its return on capital.
"As the upstream operator for Australia Pacific LNG, Origin's Integrated Gas business is the largest onshore unconventional gas developer in Australia. Origin has clear scale and capability in this area with onshore unconventional resources available to supply both the growing LNG demand and the east coast domestic gas market.
"Both LNG trains in the Australia Pacific LNG project are now in operation and the Integrated Gas business is continuing to focus on reducing costs and improving well productivity," Mr Calabria said.
The investment in APLNG saw Origin's debt rise to $13.3 billion in 2015, although a program of asset sales and cost cutting has pulled it back to $9.1 billion this year.
NewCo will include Originâ€™s interests in the Otway Gas Project, BassGas Project, Kupe Gas Project, and the Perth, Cooper, Bonaparte and Canterbury basins.