WASHINGTON -- MidOcean Energy (“MidOcean” or the “Company”), a liquefied natural gas (LNG) company formed and managed by EIG, a leading institutional investor in the global energy and infrastructure sectors, and Hunt Oil Company (“Hunt”) announced that they have entered into a definitive agreement whereby MidOcean will acquire an additional 15% interest in Peru LNG (“PLNG”) from Hunt.

Following the closing of the transaction, MidOcean’s interest in PLNG will increase from 20% to 35%. Aramco played a pivotal role in the transaction, including undertaking key technical and commercial due diligence as well as engaging with key stakeholders for transaction approval. The transaction will be funded entirely by Aramco, which will increase its interest in MidOcean to 49%. Aramco’s further investment in MidOcean strengthens MidOcean and Aramco’s position in the global LNG market and will provide both parties with further exposure to the only LNG export project in South America. Aramco’s indirect stake in PLNG will equate to 17.2%. In addition to EIG and Aramco, Mitsubishi Corporation is invested in MidOcean, among other blue-chip investors.

Hunt’s interest in PLNG will decrease from 50% to 35%, and Hunt will remain the operator of PLNG following the transaction. Hunt continues to own a 25.2% interest in the Camisea upstream project in Peru. Hunt has invested in Peru since 2000 and is committed to continuing its long history of investment in Peru and its operational excellence in the PLNG project.

PLNG owns and operates the only LNG export facility in South America, which is located in Pampa Melchorita, 170 kilometers south of Lima, Peru. PLNG’s assets consist of a natural gas liquefaction plant with 4.45 mmtpa processing capacity; a fully-owned 408 kilometer pipeline with 1,290 mmcf/d capacity; two 130,000 m3 storage tanks; a fully-owned 1.4 kilometer marine terminal; and a truck loading facility with a capacity of up to 19.2 mmcf/d. PLNG is operated by Hunt and is one of only two LNG production facilities in Latin America.

De la Rey Venter, MidOcean’s CEO, said: “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. Our belief in the long-term fundamentals of the LNG market and in the strength of PLNG’s unique 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 positive impact on the Peruvian energy market.”

Mark Gunnin, Hunt’s CEO, said: “We are focused on positioning the PLNG project for the future, and the opportunity to bring in MidOcean as a partner was a great strategic fit to make that happen.”

Morgan Stanley acted as exclusive financial advisor to MidOcean on the transaction and Latham & Watkins acted as legal advisor. Bracewell LLP served as legal advisor to Hunt.