Beach Energy sells major stake in Victorian assets to Israeli billionaire
BEACH Energy has sold a 40 per cent interest in its Otway assets for $344 million.
BEACH Energy has sold a 40 per cent interest in its Otway assets for $344 million.
The Adelaide company had flagged a sell down at its investor day last week, and today announced Monaco-based Israeli billionaire Eyal Ofer’s Ofer Global Energy would invest in the project.
Beach will remain the operator of the assets in the offshore Otway basin off the Victorian coast.
“The Otway parcel includes the Otway Gas Plant, existing gas fields Geographe, Thylacine, Halladale, Speculant and Black Watch as well as exploration prospects Enterprise and Artisan,’’ the company said.
Beach chief executive Matt Kay said the company was delighted to have O.G. on board.
“Securing an excellent development partner for the Otway gas fields is a pivotal step towards creating new supply to Australia’s East Coast gas market,” Beach chief executive Matt Kay said in a statement.
Mr Ofer, chairman of Ofer Global, said: “Throughout Ofer Global’s history, we have sought out strong partners as we’ve entered new market.
“We are therefore delighted to build a strategic partnership with Beach, a major player in one of the key regions we are focusing on.’’
Mr Ofer said his company planned to continue to build its portfolio in Australia and the region.
Mr Ofer also has real estate interests and is chairman of the Zodiac Group, a private international shipping group based in Monaco.
In a separate statement, Beach cut its fiscal year 2019 production and core earnings guidance, as a result of the Otway selldown.
The company now expects to report earnings before interest, tax, depreciation and amortisation between $1.05 billion to $1.15 billion, lower than previous guidance of $1.1 billion to $1.2 billion.
It expects to produce between 25 to 27 million barrels of oil equivalent, down from previous guidance of between 26 to 28 mmboe.
Beach shares were almost 5 per cent lower at $2.08 in early trade.