Australia's largest power and gas retailer AGL Energy is exiting Papua New Guinea, selling all of its oil and gas assets for $1.16billion to a mystery international buyer.
Managing director Michael Fraser said the sale of its PNG oil and gas exploration and production assets was ''an excellent outcome for AGL, particularly in light of current global market conditions''. As well as the PNG asset sale, AGL's balance sheet will be further fattened by the $1.18billion sale of its 22 per cent stake in Queensland Gas Company to British-based BG Group, which was announced on Tuesday.
''Coming on top of the announcements earlier this week in relation to our QGC investment, we now have considerable balance-sheet strength and strategic optionality across our retail, merchant and gas and power development businesses,'' Mr Fraser said.
AGL has executed sale and purchase agreements for all its PNG assets, including its 3.6 per cent interest in the massive, Exxon Mobil-led PNG liquefied natural gas project.
The company is also selling its 11.9per cent stake in the Kutubu field and its 66.7 per cent slice of the Gobe Main field that are operated by Oil Search, with project partners being United States-based Merlin Petroleum, Exxon Mobil and the PNG Government.
AGL said the identity of the international oil and gas company buying the assets was ''confidential at this stage''.
AGL said it would pocket about $1.1billion from the sale after closing out oil hedges. AAP