Herbert Smith, Blake Dawson and Clayton Utz all received instructions for a LNG deal that sees Chinese state-owned resources company Sinopec acquire a 15% stake in Australia Pacific LNG – in the largest LNG supply agreement in Australian history by annual volume.

The deal, projected to run for 20 years from 2015, will lower the stakes of current co-owners ConocoPhillips and Origin Energy from 50 percent to 42.5 percent each after the deal is struck.

Herbert Smith’s Hong Kong and Beijing teams advised Sinopec International Petroleum Exploration & Production Corp in the subscription agreement inked on 21 April 2011. The successful completion of the deal rests on the pending approvals of both the Chinese and Australian authorities; Australia’s FIRB (Foreign Investment Review Board) and on target Australia Pacific LNG reaching a final investment decision.

SIPC’s Australian counsel was Blake Dawson whilst Australian Pacific LNG was advised by Clayton Utz.

The transaction still awaits approvals by the Chinese and Australian governments, the Foreign Investment Review Board and on Australia Pacific LNG reaching a final investment decision.

Australia Pacific is the leading producer of coal seam gas in Australia and owns the nation’s biggest CSG reserves. The company proposes to build a CSG to LNG export project in Queensland, which will develop Australia Pacific’s gas fields in the Surat and Bowen basins in south western and central Queensland.

The Herbert Smith team was led by head of Asia energy practice Anna Howell. In March 2010, Howell also led the Herbert Smith team in advising the China National Offshore corporation in a 10% equity investment and a 20-year LNG purchase agreement with Australian energy producer BG Group, in one of Australia’s largest LNG contracts on record.ALB

 
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