Origin Energy Resources Limited - proposed acquisition of Woodside Energy Limited's interest in Otway Gas Project

Summary

Origin proposed to acquire Woodside's interest in the Otway Gas Project.
Post-acquisition, Origin would hold the following interests in the Otway Gas Project:
- a 67.23% interest in the Development Joint Venture;
- a 67.23% interest in Exploration Joint Venture (T/30P and VIC/P43); and
- a 82.3% interest in Exploration Joint Venture (T/34P).

Market definition

In respect of natural gas, the ACCC considered the relevant markets to be the southern states (VIC, NSW, SA) markets for the:
- exploration and development of natural gas;
- production of natural gas; and
- wholesale supply of natural gas.

In respect of LPG, the ACCC considered the relevant markets to be the Victorian and South Australian markets for the:
- production and sale of LPG;
- wholesale supply and distribution of automotive LPG; and
- local markets for the retail supply of automotive LPG.

In respect of condensates, the ACCC considered the relevant markets to be the Victorian markets for the:
- production of condensate; and
- wholesale supply of condensate.

Competition analysis

The ACCC considered that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. Factors informing this conclusion included:
- the small level of concentration which resulted in each market;
- the existence of several competitors who continued to provide alternative supply options for customers;
- in addition to existing sources of supply, several gas field developments were underway in areas offshore of Victoria; and
- Woodside's long term gas supply contract with TRUenergy would be binding upon Origin.