POssibilities
The Origin/Conoco deal was instrumental in forcing the capitulation of BG Group and the withdrawal of its $13.8 billion bid, and when compared to the other major deals in the sector looks like a sizable coup on Origin’s part.
The deal achieved the best pricing for Origin’s 3P (proven, probable and possible) reserves at a $1.41 per gigajoule, when compared to its peers and a healthy $2.99 per gigajoule for its 2P (proved plus probable) reserves.
In the wake of Babcock and Brown’s implosion, there are a number of power assets that could make an attractive addition to Origin’s portfolio and the beefed up balance sheet should also put it in a good place, if NSW goes ahead with plans to privatise its electricity assets.
However, its not going to be the only player gunning for these opportunities, with a cashed-up AGL Energy hot on its heels (Mission accomplished, October 30).
BNB
babcock & brown limited
