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Herbert Smith Freehills advises Origin Energy on the $1.585 billion sale of Lattice Energy

02 October 2017 | Australia, Asia Pacific
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Herbert Smith Freehills has advised Origin Energy on the sale of its conventional upstream oil & gas business Lattice Energy to Beach Energy for $1.585 billion. Lattice's assets comprise a portfolio of conventional upstream assets in Australia and New Zealand, including interests in the Otway, BassGas, HBWS, Kupe, Cooper Basin and Perth Basin gas projects. 

The sale arrangements include long-term gas sale agreements providing for the sale of a substantial portion of Lattice’s gas production to Origin, enabling Origin to retain the benefits of an integrated business model and to continue to meet the demands of its domestic customers.

The sale is subject to customary conditions, including approvals from the New Zealand Minister of Energy and Resources and the New Zealand Overseas Investment Office.

The sale concludes a near 12 month process during which Herbert Smith Freehills advised Origin in relation to two potential divestment options for Lattice being either an IPO or a sale.  Ultimately, Origin determined that the sale to Beach Energy represented the best option for Origin shareholders.

The sale follows a number of other asset sales in respect of which Herbert Smith Freehills also advised Origin, including the sale of the Darling Downs Pipeline and other non-core energy infrastructure and renewables assets.

The Herbert Smith Freehills team was co-led by partners Robert Merrick and Rebecca Maslen-Stannage.  The core team included:

  • Partners Robert Merrick, Stuart Barrymore and Jinny Chaimungkalanont, special counsel Jau-Shi Liew, senior associates Chelsea Herman and James Sippe and solicitors Claire Russo, Patrick Corrigan and Nick Harding who advised in respect of the restructuring and sale;
  • Partner Rebecca Maslen-Stannage, executive counsel Michelle Palethorpe and solicitor Claire Koller-Smith who advised in respect of the potential IPO;
  • Partner Graeme Gamble, senior associate Lynda Tully and solicitors Mitchell Tatam and Alexander Butler who advised in respect of the long term gas sale arrangements; and
  • Partner Damien Bailey and solicitors Juliet Zhu and Mark Khouri who advised in respect of the transitional service arrangements.

The Herbert Smith Freehills team worked closely with Origin’s in-house legal team including Daniel Krutik, Cher Bartlett, Jessica Edwards, Paul de Wet and Neil Tracey.

Herbert Smith Freehills partner Robert Merrick said: “We are delighted to have supported Origin on this deal. It is a tremendous outcome for all parties and achieves Origin’s goals of reducing debt and providing value for shareholders, while maintaining gas supply to Origin’s domestic customers.”

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