ConocoPhillips to pay $8 bln for stake in Origin gas scheme

0 Comments | AFP, September, 2008

SYDNEY (AFP) — US oil giant ConocoPhillips will pay up to 9.6 billion dollars (8.0 billion US dollars) for a half share of a coal seam gas (CSG) venture with Australia's Origin Energy in a deal that could thwart a hostile bid by Britain's BG Group.

Origin and ConocoPhillips on Monday told the Australian stock exchange that the US firm had agreed to invest in a 50 percent stake in Origin's scheme to convert CSG in Queensland state to liquefied natural gas (LNG) for export to Asia.

Origin's Managing Director Grant King said the venture would "transform" the company and give it "financial strength to fund a decade of growth."

"This strengthened financial position will enable Origin to fund both its future growth and undertake capital management initiatives for...