Overseas buyers get green light for $1.75 billion oil industry deal

Lattice, currently owned by ASX-listed Origin Energy, has a 50 per cent interest in the Kupe Joint Venture.

Beach Energy has been given the green light by the Overseas Investment Office for a $1.75 billion oil industry deal to buy the rights or interests in up to 100 per cent of the fully paid ordinary shares in Lattice Energy.

Lattice, currently owned by ASX-listed Origin Energy, has a 50 per cent interest in the Kupe Joint Venture, which operates the Kupe Production Station and other assets associated with the Kupe gas field.

NZX-listed Genesis Energy has a 46 per cent interest in the Kupe Joint Venture, which owns the Kupe oil and gas field that lies in the offshore Taranaki basin, with 4 per cent held by New Zealand Oil & Gas.

The proposal was considered an overseas investment in both sensitive land and significant business assets.

Lattice through its interest in the joint venture owns or controls a freehold interest in just more than 200ha of land in Manaia, on which the production station is constructed.

Lattice also participated in one other petroleum exploration permit in the Canterbury basin.

Benefits deemed as being likely from the investment included increasing the gas and condensate extraction efficiency and extending the life of the Kupe gas field, additional capital investment to develop the gas field and more efficient exploration of relevant petroleum acreage in the Canterbury Basin, increasing access to and investment interest in that acreage, and advancing significant government policy.

Beach Energy is owned by Australian firms Seven Group Holdings (25.60 per cent) and Paradice Investment Management (6.92 per cent), along with US company Dimensional Fund Advisors (6.06 per cent) and "various overseas persons" (61.42 per cent).

Origin Energy's share price was trading down 1.4 per cent this afternoon at A$9.22.