The sale depends on the completion of the previously announced $1.39bn deal with ConocoPhillips to acquire its northern Australia assets and Timor-Leste portfolio
Santos to sell 25% stake in Darwin LNG and Bayu-Undan to SK E&S for $390m. (Credit: Pixabay/Gerd Altmann)
Australia-based oil firm Santos has agreed to sell a 25% stake in Darwin LNG facility and Bayu-Undan gas field to Korean energy company, SK E&S for $390m.
The Bayu-Undan field is a gas-condensate field, which is located 250km south east of Suai in Timor-Leste and 500km north west of the Northern Territory in Australia.
Santos said that the sale depends on the completion of the previously announced $1.39bn deal with ConocoPhillips to acquire its northern Australia assets on 14 October last year.
The sale includes sales of ConocoPhillips’ 37.5% stake in the Caldita Field, its 56.9% stake in the Darwin LNG facility and Bayu-Undan field, a 40% stake in the Poseidon Field, and a 50% in the Athena field.
Santos’ deal with SK E&S is also subject to third-party consents, regulatory approvals and a final investment decision on Barossa.
Santos managing director and CEO Kevin Gallagher said: “We are in advanced discussions to sell-down equity in Barossa to a target ownership of around 40% to achieve increased partner alignment.”
“Santos expects to take a final investment decision for the development of Barossa following completion of the ConocoPhillips acquisition and once all necessary technical, engineering and commercial contracts are in place, including the processing agreement with Darwin LNG, to allow the project to proceed subject to market conditions.”
SK E&S currently holds a 37.5% stake in Barossa project
The oil company said that SK E&S currently holds a 37.5% stake in the Barossa project to backfill Darwin LNG and the sale advances partner alignment for developing the Barossa.
Located in the Bonaparte Basin of the Timor Sea offshore Australia, in a water depth between 130m and 350m, the Barossa is a gas and condensate field.
The Barossa project will include FPSO, subsea wells, six subsea production wells as well as a 260km-long gas export pipeline to send the produced gas to the Darwin LNG facility.