MidOcean Energy, a liquefied natural gas (LNG) company formed and managed by EIG, has announced a significant expansion of its stake in Peru LNG (PLNG), following an agreement with Hunt Oil Company. The deal will see MidOcean acquire an additional 15% interest in PLNG from Hunt, raising its overall share to 35%. This development further strengthens MidOcean’s position in the global LNG market.
Aramco played a crucial role in facilitating the transaction by providing the necessary funding and conducting technical and commercial due diligence. Aramco’s involvement will result in an increase in its ownership of MidOcean to 49%, while its indirect interest in PLNG will now stand at 17.2%. Aramco’s further investment in MidOcean and its exposure to PLNG is expected to bolster both companies’ positions within the LNG export market. PLNG is currently the only operational LNG export project in South America, making it a highly strategic asset.
In addition to EIG and Aramco, other major investors in MidOcean include Mitsubishi Corporation and several blue-chip stakeholders.
Hunt Oil, which has been a key player in Peru since 2000, will see its interest in PLNG decrease from 50% to 35%, but will remain the operator of the project. Hunt also retains a 25.2% interest in the Camisea upstream project in Peru. Despite this reduction in its PLNG stake, Hunt remains committed to the long-term success of the project and its continued investments in Peru.
PLNG owns and operates the only LNG export facility in South America, located in Pampa Melchorita, around 170 km south of Lima, Peru. The facility boasts a natural gas liquefaction plant with a capacity of 4.45 million tonnes per annum (mmtpa), a 408 km pipeline, and two 130,000 m³ storage tanks. Additionally, it includes a marine terminal and a truck loading facility, positioning PLNG as a significant player in the region’s energy market. It is also one of only two LNG production facilities in all of Latin America.
MidOcean CEO De la Rey Venter welcomed the expansion of the company’s stake in PLNG, calling it “a strategic asset that aligns with MidOcean’s vision of building a global, diversified, and resilient LNG portfolio.” Venter underscored MidOcean’s confidence in the long-term fundamentals of the LNG market and its belief in PLNG’s unique position as South America’s sole LNG export facility. “We look forward to strengthening our partnership with Hunt Oil and other stakeholders as we support PLNG’s continued contribution to the Peruvian energy market,” he added.
Hunt Oil’s CEO, Mark Gunnin, expressed enthusiasm about the partnership with MidOcean, stating, “This deal provides an excellent opportunity to position the PLNG project for the future.” Gunnin noted that MidOcean’s involvement aligns well with Hunt’s strategic goals for the project.
The financial aspects of the transaction were managed by Morgan Stanley, acting as the exclusive financial advisor to MidOcean. Legal advice was provided by Latham & Watkins, with Bracewell LLP serving as legal advisors to Hunt Oil. The transaction is expected to further consolidate MidOcean and Aramco’s standing in the global LNG sector while maintaining Hunt’s operational leadership in the project.
For additional information, please visit EIG’s website at www.eigpartners.com or MidOcean Energy’s website at www.midoceanenergy.com.
