Carnarvon expects to close Bedout divestment by mid-year

Carnarvon Energy, a Sydney-listed company, on May 24 announced that the closure of its agreement to sell a 10% interest in its Bedout assets offshore Western Australia to OPIC Australia, a subsidiary of Taiwan's CPC Corporation, is expected to be completed by the middle of this year. The deal, initially announced in February, involves a cash consideration of $146mn.

Under the terms of the agreement, Carnarvon will receive an upfront payment of $56mn upon completion of the transaction. Additionally, once a final investment decision (FID) is made on the Dorado development, Carnarvon will receive a carry of $90mn for its forward expenditure in the Bedout permits.

The completion of the transaction is subject to customary conditions, including joint venture approval, approval by the Foreign Investment Review Board (FIRB), and approval and registration by the National Offshore Petroleum Titles Administrator (NOPTA).

Carnarvon said that the majority of these conditions have already been satisfied, and both parties are working to fulfill the final condition in a timely manner.

Carnarvon's Bedout assets include the WA-64-L production license, which holds the Dorado field, as well as several exploration permits. The sale of the 10% interest will result in a corresponding decrease in Carnarvon's ownership across all the assets.

Santos holds an 80% interest in the Dorado field and a 70% interest in the Pavo field, operating both of them. Earlier this year, Santos received regulatory approval for its Dorado oil and gas project. Dorado now has the primary regulatory approvals required to support development.