Santos has divested two non-core assets as part of its efforts to optimise its portfolio.
The Australian energy firm executed a conditional sale and purchase agreement to sell its 42.86 per cent interest in the Mahalo joint venture in Queensland’s Bowen Basin to Comet Ridge Ltd. for AU$40 million in an upfront consideration and up to AU$20 million in contingent payments.
Santos also completed the divestment of its 42.71 per cent interest in the Petrel fields and 100 per cent interest in the Tern fields to Eni Australia in the Bonaparte Basin off the coast of Northern Australia.
This delivered cash and contingent considered and reduced Santos’ future decommissioning exposure.
Santos CEO Kevin Gallagher said: “I am pleased to agree commercial terms with our existing partners that will allow them to progress the development of these assets, unlocking future supply for the Australian domestic gas market.
“These two transactions reflect our commitment to capital discipline to deliver sustainable and competitive shareholder returns.
“Santos’ near-term priorities are to deliver Barossa and Pikka, and to progress the next phase of growth opportunities that leverage our existing operating footprint.”
Santos’ near-term priorities are to advance its Barossa and Pikka projects and to progress the next phase of growth opportunities.
