ORIGIN TO DIVEST UPSTREAM OIL AND GAS BUSINESS
Written on the 6 December 2016
ORIGIN Energy will spin off its upstream oil and gas business in an as-yet unpriced IPO.
It will allow the Sydney-based company (ASX: ORG) to focus on its energy markets business and a simplified integrated gas business.
The new business, NewCo, will include Origin's interests in a number of gas and oil projects, including:
NewCo will have assets including 2P reserves of 948 PJe1 and FY16 production of 75 PJe.
The funds raised in the IPO, which is expected to be complete by June 2017, will be used to pay off some of Origin's debt.
Origin Energy is trading up 3.43 per cent this morning, at $6.64 per share.