This comes after an agreement between Brookfield Asset Management and Macquarie Capital to acquire Apache Corporation’s domestic oil and gas assets in Western Australia (WA) for $US2.1 billion, with each holding an initial 50 per cent interest, was completed on 5 June.
Wesfarmers will invest $US100 million to acquire a 27.4 per cent interest in the special purpose vehicle in which Macquarie Capital holds its interest, representing a 13.7 per cent interest in Quadrant Energy.
As part of the investment, Wesfarmers will have the right to appoint a director to the Board of Quadrant Energy.
Wesfarmers Managing Director Richard Goyder said the investment in Quadrant is complementary to Wesfarmers’ Chemicals, Energy and Fertilisers division’s existing businesses and is expected to generate a satisfactory return to shareholders.
Quadrant Energy’s portfolio includes;
- Three operating gas fields – Reindeer, John Brooks and Halyard-Spar, and in the BHP Billiton operated Macedon;
- Three operating oil-fields – Coniston-Novara, Van Gogh and Stag, and in the BHP Billiton operated Pyrenees Area;
- Gas processing facilities and associated infrastructure at Devil Creek, Varanus Island and Macedon; and,
- Upstream acreage in the Carnarvon, Exmouth and Canning Basins.
All of Quadrant’s gas production is supplied to the WA domestic gas market, and currently represents approximately 40 per cent of WA’s domestic gas supply.