MidOcean Energy Acquires Further Interest in Hunt Oil’s Peru LNG

EIG’s MidOcean Energy and Hunt Oil Co. recently entered a definitive agreement—MidOcean will absorb an additional 15% interest in Peru LNG (PLNG) from Hunt Oil. Following transactional close, MidOcean’s stake in PLNG will increase from 20% to 35%. Aramco managed parts of the acquisition, including technical and commercial due diligence and engaging with stakeholders for transaction approval.

PLNG owns and operates an LNG export facility in Pampa Melchorita, 170 km south of Lima, Peru. Its assets consist of a natural gas liquefaction plant with 4.45 MMtpa processing capacity; a 408-km pipeline with 1,290 MMcf/d capacity; two 130,000 m³ storage tanks; a 1.4-km marine terminal; and a truck loading facility with up to 19.2 MMcf/d capacity.

“We are pleased to increase our stake in PLNG, a strategic asset that aligns with MidOcean’s vision of creating a global, diversified, and resilient LNG portfolio,” said De la Rey Venter, CEO, MidOcean Energy. “Our belief in the long-term fundamentals of the LNG market and in the strength of PLNG’s position as the only LNG export facility in South America remains steadfast. We look forward to strengthening our partnership with Hunt Oil and the other PLNG co-venturers and continuing to support the project’s impact on the Peruvian energy market.”

Peru LNG under construction; Image Credits: PLNG

The transaction will be funded by Aramco, which will raise its interest in MidOcean to 49% and its indirect stake in PLNG to 17.2%. In addition to EIG and Aramco, Mitsubishi Corp. and other blue-chip investors own stake in MidOcean. Hunt Oil’s PLNG interest will decrease from 50% to 35% but will maintain status as sole operator.

MidOcean Energy News

In March 2024, MidOcean Energy finalized an agreement to acquire Tokyo Gas’ interests in a portfolio of integrated LNG projects in Australia. The interest acquisition includes stakes in the Gorgon LNG, Pluto LNG, and Queensland Curtis LNG projects. These projects are benefitted by experience from operators such as Chevron, Woodside Energy, and Shell, and contains upstream and midstream operations, liquefaction, and sales as part of its LNG value chain. Per the terms of the acquisition, MidOcean will open an office in Perth to support and oversee the projects.

Recent Aramco Investments

In August, Aramco agreed to finance up to $100 million in research and development projects with the King Abdullah University of Science and Technology (KAUST) over the next decade. The research, designed to deliver environmental and commercial benefits, ranges from essential to applied technologies. Research areas, focused on developing commercially viable results, include the energy transition, sustainability, materials transition, upstream technologies, and digital solutions. Additional projects will focus on advanced carbon materials, geothermal energy, and more.

Sub-topics within selected research areas include:

Energy Transition

• Liquids-to-chemicals conversion
• Future refineries research
• Low-carbon aviation fuels

Sustainability

• Hydrogen
• Carbon capture and storage
• Renewables
• Energy storage solutions

And, in July, Aramco granted contracts worth over $25 billion to accelerate its strategic gas expansion projects—the Jafurah unconventional gas field, the Master Gas System, new gas rigs, and ongoing capacity maintenance.