Beach Energy has renegotiated a royalty agreement with Exxon Mobil subsidiary Esso Australia and resolved a related claim that Beach described as a win-win result.
The royalty agreement relates to assets in the Cooper and Eromanga Basins in central Australia that Beach gained in 2006 through its acquisition of Esso Australia subsidiary Delhi Petroleum.
The confidential royalty agreement attached to this deal has been renegotiated, Beach said on Thursday.
It said the agreement took into account the growth potential of Delhi’s assets and the changing dynamics of eastern Australian energy markets.
Beach said the new agreement was of mutual benefit to both parties and would facilitate long-term capital investment in the assets.
Esso Australia previously claimed that Delhi underpaid royalties due to its calculation methods but this matter had been resolved, Beach said in a statement on Thursday.
Shares in Beach were up four cents, or 2.92 per cent, at $1.41 at 1415 AEST.