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Aramco is increasing its interest in MidOcean Energy with an agreement to a 15% interest from Hunt Oil Co. in the Peru LNG (PLNG) project, the companies said in a Sept. 16 press release.
Hunt is selling a 15% interest in PLNG to MidOcean, an LNG company managed by EIG in which Aramco is an investor. Aramco is entirely funding the transaction to increase its interest in MidOcean to 49%. Aramco’s indirect stake in PLNG will rise to 17.2% after the deal is complete.
Hunt Oil’s interest in PLNG will decrease to 35% from 50%. The company will remain PLNG's operator after the transaction closes.
PLNG owns and operates the only LNG export facility in South America in Pampa Melchorita, Peru. Its assets include a natural gas liquefaction plant with 4.45 million tonnes per annum processing capacity; a 408-km pipeline with 1,290 MMcf/d capacity; two 130,000 cu. m storage tanks; a 1.4-km marine terminal; and a truck loading facility with a capacity of up to 19.2 MMcf/d.
Hunt also continues to own a 25.2% interest in the Camisea upstream project in Peru, where the country has been an investor since 2000. Dallas-based Hunt, founded in 1934, is one of the largest privately held independent U.S. oil and gas companies. Internationally, its operations extend to Iraq and exploration projects in Tunisia and Morocco.
“We are pleased to increase our stake in PLNG, a strategic asset that aligns with MidOcean’s vision of creating a global, diversified and resilient LNG portfolio,” De la Rey Venter, MidOcean’s CEO, said.
In addition to EIG and Aramco, Mitsubishi Corp. is also an investor of MidOcean, along with other blue-chip investors.
“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,” Venter said.
Morgan Stanley acted as exclusive financial adviser to MidOcean on the transaction and Latham & Watkins acted as legal adviser. Bracewell LLP served as legal adviser to Hunt.
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