Australian oil and gas producer Beach Energy Ltd. announced May 31 that it has completed the sale of its 40% interest in the Victorian Otway assets to O.G. Energy Holdings Ltd. subsidiary OGOG (Otway) Pty. Ltd. for A$262.0 million.

The deal, which had an initial purchase price of A$344.0 million, has an effective date of July 1, 2018. The completion payment amounted to $262.0 million, after $82.0 million in adjustments were applied to the initial purchase price.

The deal is part of Beach Energy's plans to develop more gas supplies in for markets in the east coast of Australia, according to Beach Energy Managing Director Matt Kay. Beach Energy entered into the agreement on Oct. 5, 2018.

Beach Energy will remain operator of the assets and retain a 60% stake. The assets include the Geographe, Thylacine, Halladale, Speculant and Black Watch gas fields; Enterprise and Artisan exploration prospects; and the Otway Gas Plant.

Beach has also agreed to transfer a 40% interest in the La Bella gas field to O.G. Energy.