This stake will include interests in gas and oil reserves, production and processing infrastructure.
The balance will be paid to Oil Search on the PNG Gas Project sanction and scheduled for the second half of this year, the two companies told the ASX on Friday.
AGL was meant to have paid $US400 million for the stake but that price rose to $US427 million under the pricing formula, which takes into account the Singapore Tapis oil price.
The original price was estimated around $US300 million when the deal was first brokered last year.
Oil Search has also invested $US3.4 million ($A4.61 million) in a hedging program to protect itself against a drop in global oil prices during the pricing of the deal.
The investment will be owned by the new AGL Energy business formed as part of the proposed demerger of AGL which, if approved by AGL shareholders, is due to take effect in April.
Once the agreement is completed, AGL will have interests in the project at every stage, from wellhead to retail.
In addition to its stake in the gas fields, AGL has converted its gas sales agreement into a binding sale and purchase agreement. It is also a 50% partner (with Petronas) in the pipeline itself.
The PNG gas project participants are now ExxonMobil (39.4%), Oil Search (37.2%), AGL (10%), MRDC, a PNG company representing landowners (3%) and Nippon Oil Exploration (3.4%). Oil Search has attributed the remaining 7% of the project to Santos but that company’s involvement in the project is yet to be finalised.
