Carnarvon Energy Ltd (ASX:CVN) is moving towards finalising the divestment of a 10% stake in its Bedout assets offshore Western Australia to OPIC Australia Pty Ltd, a wholly owned subsidiary of CPC Corporation, the national oil and gas company of Taiwan.
Under the sale agreement, the company will receive a total cash consideration of US$146 million.
This includes an upfront payment of US$56 million (~A$80 million) upon completion of the transaction and a further carry of US$90 million (~A$129 million) towards Carnarvon's share of the Dorado development costs once a final investment decision is taken.
With the final approval from the Foreign Investment Review Board (FIRB) being the last hurdle in their path, both parties are expecting to close the transaction within this quarter under the terms of the sales agreement.
On track for completion
Carnarvon managing director and CEO Adrian Cook said: "The CPC transaction is on track to complete in this current quarter.
"All conditions other than FIRB approval have been satisfied, including, importantly, the approval of our partner, Santos, for the divestment to proceed and CPC to join the joint venture.
"CPC is already an established investor in oil and gas assets in Australia, with interests in the Prelude FLNG and Ichthys LNG projects.
"CPC has also more recently received FIRB approval to acquire an interest in Exploration Permit WA-533-P from INPEX."