Santos and its GLNG joint venture partners have struck a deal to acquire 100 per cent of the producing Greater Meridian coal seam gas (CSG) project in Queensland for gross consideration of AU$430 million.
Under the binding agreement, Santos will secure a 30 per cent interest for a net cost of US$85 million to US$90 million after accounting for cash flow adjustments, and will assume operatorship upon completion.
The conclusion of the deal is targeted for late 2026, subject to FIRB, competition, and regulatory clearances.
Santos CSG Pty Ltd will enter a new joint operating agreement with its GLNG joint venture partners, TotalEnergies, PETRONAS and KOGAS, effective from completion. Westside will provide transitional support for up to six months post completion.
The acquisition transitions a long-standing supply contract into equity production, establishing Meridian as GLNG’s fifth production hub.
Located near Moura, the project comprises 280 producing wells generating 47 terajoules per day, alongside significant growth potential through 322 petajoules of gross 2P reserves.
The deal is expected to add 17 million barrels of oil equivalent (mmboe) to Santos’ 2P reserves and boost annual production by roughly 1 mmboe.
“The Meridian acquisition meets our disciplined capital allocation criteria, exceeds our internal hurdle rates, and is value accretive for Santos,” Santos CEO Kevin Gallagher said.
Concurrently, Santos finalised the sale of its 42.86 per cent operated stake in the nearby Mahalo joint venture in the Bowen Basin to Comet Ridge.
Santos collected total initial proceeds of approximately AU$32 million, comprising AUU$2 million in deposit, AU$22.42 million in cash, and 83.78 million Comet Ridge shares valued at AU$7.5 million.
An additional A$30 million in contingent payments remains tied to future production milestones, potentially bringing total transaction value to AU$62 million.
Gallagher noted that the divestment highlights Santos’ commitment to portfolio optimization by monetising pre-development assets outside its immediate operational focus.
