Prospective bidders for Origin Energy's $300 million gas...

Prospective bidders for Origin Energy's $300 million gas interests in Western Australia have been told the undeveloped Waitsia field is the largest onshore conventional gas find in the country for 30 years and could easily undercut competing supplies from the North West Shelf venture in the Perth market.

In a confidential flyer distributed to interested parties, Origin's adviser, UBS, says the package of assets up for sale in the Perth Basin offers a "rare opportunity to participate in one of the most prospective discoveries in Australia".

The Perth Basin package, part of a targeted $800 million divestment program by indebted Origin, includes a 67 per cent stake in the producing Beharra Springs gasfield and Dongara processing plants, in addition to the stakes in undeveloped fields including Waitsia and Senecio.

The WA assets are understood to have attracted the attention of Quadrant Energy, controlled by Brookfield Infrastructure and Macquarie, although any move by the private player along that direction is expected to attract the attention of the national competition regulator, given Quadrant's strong existing position as a gas supplier into the Perth market.

Woodside Petroleum is also thought to be interested, with one source suggesting the WA player could use the gas to help supply an expansion of its Pluto liquefied natural gas venture.

AWE owns a minority stake in the Beharra Springs/Dongara venture, as well as 50 per cent of the L1/L2 venture holding Waitsia and Senecio. Citigroup analyst Dale Koenders has estimated Origin could fetch $300 million for its Perth Basin assets


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