EIG’S MIDOCEAN RAISES STAKE IN PERU LNG TO 35 PCT

KUALA LUMPUR, Sept 17 (Bernama) -- MidOcean Energy (MidOcean), a liquefied natural gas (LNG) company formed and managed by EIG, and Hunt Oil Company (Hunt) announced they have entered into a definitive agreement for MidOcean to acquire an additional 15 per cent interest in Peru LNG (PLNG) from Hunt.

Following the closing of the deal, MidOcean’s interest in PLNG will rise from 20 per cent to 35 per cent, according to a statement.

“Our belief in the long-term fundamentals of the LNG market and in the strength of PLNG’s unique position as the only LNG export facility in South America remains steadfast.

“We look forward to strengthening our partnership with Hunt Oil and the other PLNG co-venturers and continuing to support the project’s positive impact on the Peruvian energy market,” said MidOcean chief executive officer (CEO), De la Rey Venter.

Meanwhile, Hunt CEO, Mark Gunnin said: “We are focused on positioning the PLNG project for the future, and the opportunity to bring in MidOcean as a partner was a great strategic fit to make that happen.”

Aramco played a pivotal role in the transaction, including undertaking key technical and commercial due diligence as well as engaging with key stakeholders for transaction approval. The transaction will be funded entirely by Aramco, which will increase its interest in MidOcean to 49 per cent.

This further investment strengthens MidOcean and Aramco’s position in the global LNG market and will provide both parties exposure to South America’s only LNG export project, with Aramco’s indirect stake of 17.2 per cent in PLNG.

Hunt’s interest in PLNG will decrease from 50 per cent to 35 per cent, though it will remain the operator of the project. Hunt continues to own a 25.2 per cent interest in the Camisea upstream project in Peru.

Located in Pampa Melchorita, 170 kilometres (km) south of Lima, Peru, PLNG owns and operates the only LNG export facility in South America. The facility is operated by Hunt and is one of only two LNG production facilities in Latin America.

-- BERNAMA