Santos has agreed to divest two non-core gas assets in Australia as the oil and gas producer continues to optimize its portfolio and focus capital on priority growth projects.
The company said it has executed a conditional sale and purchase agreement to sell its 42.86% operated interest in the Mahalo Joint Venture in Queensland’s Bowen Basin to Comet Ridge, receiving $26.5 million (A$40 million) in upfront consideration and up to $13.2 million (A$20 million) in contingent payments linked to production milestones.
Separately, Santos has completed the sale to Eni Australia of its 42.71% interest in the Petrel fields and its 100% interest in the Tern fields in the Bonaparte Basin offshore northern Australia. The transaction delivered cash and contingent consideration and reduced Santos’ future decommissioning exposure, the company said.
“This transaction demonstrates Santos’ capital discipline, monetizing pre-development assets that are not near-term priorities in our capital allocation framework,” 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,” said Kevin Gallagher, Santos Managing Director and Chief Executive Officer.
According to Gallagher, Santos’ near-term focus remains on delivering the Barossa and Pikka projects while advancing the next phase of growth opportunities that leverage its existing operating footprint.
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