Production associated with the assets under sale averaged around 46mboed during Q1 2020. Credit: ConocoPhillips Company.

American multinational energy company ConocoPhillips has completed the sale of its subsidiaries that hold its Australia-West assets and operations to Santos for $1.265bn.

In October last year, the companies signed a deal for Santos to acquire ConocoPhillips’ northern Australia business with operating interests in Darwin LNG, Bayu-Undan, Barossa, as well as Poseidon for $1.39bn and an additional $75m in contingency payment subject to a final investment decision (FID) on Barossa.

However, due to recent market volatility as a result of Covid-19 and the deferral of Barossa FID, the two firms agreed to decrease the previously announced $1.39bn upfront payment at completion to $1.265bn.

However, the contingent payment has increased from $75m to $200m.

ConocoPhillips executive vice-president and CEO Matt Fox said: “Santos has a strong presence in the Australian oil and gas industry and is already a co-venturer in the Bayu-Undan, Darwin LNG and Barossa projects. We are pleased to close this sale with an Australian company that will help continue the development of Australia’s oil and gas resources.

“ConocoPhillips has more than two decades of local operations success in Australia and we look forward to continuing our presence in the nation with our Australia Pacific LNG project and exploration activities.”

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According to ConocoPhillips, production associated with the assets under sale averaged around 46mboed for the first quarter this year.

These assets had proven reserves of approximately 17 million boe by the end of last year.

In March this year, ConocoPhillips sold two oil assets in the Permian Basin and the southern Denver-Julesburg (DJ) Basin for undisclosed buyers.