Japan’s largest oil and gas explorer, Inpex, said Friday it has exercised its pre-emptive rights to acquire a 0.735% stake in Australia’s Ichthys liquefied natural gas project from JERA.
The move prevents the interest from being transferred to MidOcean Energy, which had previously agreed to purchase the stake.
Ichthys is one of Inpex’s flagship projects and began production in 2018. The development produces LNG, condensate and liquefied petroleum gas from offshore gas resources in western Australia.
The project has annual LNG production capacity of 9.3 million metric tons.
After the transaction, Inpex’s ownership interest will increase to 68.555%.
Inpex said exercising its pre-emptive right is consistent with its long-term strategy of expanding its upstream gas assets. The company also said the larger stake would contribute to energy security in Japan and across the wider Asia-Pacific region.
Financial terms were not disclosed.
JERA, Japan’s largest power generator, confirmed it will now sell its entire 0.735% interest in Ichthys to Inpex.
The company had announced in March that it planned to sell the stake to MidOcean Energy, an LNG company backed by U.S. energy-focused private equity firm EIG.
JERA is jointly owned by Tokyo Electric Power and Chubu Electric Power.
JERA’s wider asset-sale plans remain unchanged. The company said its agreement to sell its 0.417% interest in the Chevron-operated Gorgon LNG project to MidOcean Energy was not affected by the Ichthys transaction.
Completion of the Inpex deal remains subject to conditions, including regulatory approvals from Australian authorities.
Inpex said the acquisition is expected to have minimal impact on its consolidated financial results.
The transaction comes as energy companies continue to reassess LNG assets and supply security across the Asia-Pacific region. LNG has become an increasingly important part of energy planning for countries that depend heavily on imported fuel.
For Japan, continued access to long-term gas resources is particularly significant because the country imports much of its energy needs.
By increasing its Ichthys interest, Inpex will secure a larger economic position in a project that has already been producing for several years.
The transaction also demonstrates how pre-emptive rights included in joint-venture agreements can influence ownership changes involving major energy assets. Rather than allowing JERA’s interest to pass to the previously agreed buyer, Inpex exercised its contractual right to acquire the stake itself.
The transaction remains subject to regulatory conditions before completion.
Original article
Comments