Santos transfers offshore Southeast Asia E&P interests to Ophir

Offshore staff

LONDON – Ophir Energy has agreed to acquire various offshore Southeast Asia interests from Australian company Santos for $205 million.

These comprise:

• 31.875% in the block 12W PSC2 (Chim Sáo and Dua oil fields), Vietnam
• 67.5% in the Madura Offshore PSC (Maleo and Peluang gas fields), Indonesia
• 45% in the Sampang PSC (Oyong and Wortel gas fields), Indonesia
• 20% in the deepwater block R PSC (Bestari oil discovery), Malaysia
• 45% in the SS-11 PSC, Bangladesh
• 50% in block 123 PSC and 40% in block 124 PSC, Vietnam.

All Santos employees associated with the assets will transfer to Ophir under the deal.

Santos says the producing fields are relatively late-life and not core to its portfolio. The company’s share of production from the fields during 1Q 2018 was 1.4 MMboe.

The company plans to use the proceeds from the sale to reduce its net debt, which was $2.5 billion at the end of March.

Santos also intends to offload its 50% interest in the North West Natuna PSC (Ande Ande Lumut) oil development offshore Indonesia (not included in the transaction).

Ophir said the move was in line with its strategy of rebalancing toward a larger production and cash flow base to allow it to support a refocused exploration portfolio.

It sees upside potential in development, appraisal and exploration opportunities in Vietnam, Indonesia, and Bangladesh.

05/04/2018