Offshore staff
ADELAIDE, Australia – Santos has agreed to sell a 25% interest in Darwin LNG and the Bayu-Undan field in the Timor Sea to SK E&S for $390 million.
In addition, Santos will receive around $120 million of cash flow related to these interests from Jan. 1 to Oct. 1, 2019.
The sale remains conditional on the company completing its acquisition of ConocoPhillips’ northern Australia and Timor-Leste portfolio; third-party consents and regulatory approvals; and a final investment decision on Barossa.
SK E&S already has a 37.5% interest in the offshore Barossa development project which will backfill Darwin LNG.
Santos managing director and CEO Kevin Gallagher said the company was in advanced discussions to sell-down equity in Barossa to its targeted ownership of around 40%, in order to achieve increased partner alignment.
Once all necessary technical, engineering, and commercial contracts are in place, including the processing agreement with Darwin LNG, the Barossa project should proceed subject to market conditions, he added.
03/12/2020
