Beach Energy Divests Stake in Victorian Offshore Gas Project
Beach Energy has announced the sale of its 60% stake in the Victorian offshore gas project VIC/L35 to Amplitude Energy and O.G. Otway for $70 million.
The deal also includes additional production royalties estimated at $140 million over the project's life. The sale is expected to close in Q1 of the next financial year.
Production from the field is anticipated to begin in 2028 and last eight years.
In a separate move, Beach Energy has decided not to proceed with drilling the La Bella 2 development well in the Otway Basin, redirecting over $500 million of capital to other opportunities.
Beach Energy managing director and CEO Brett Woods said the transaction demonstrates the company's capital discipline and allows redeployment of capital into opportunities with stronger returns and lower development costs.