Santos has announced the successful financial close of new syndicated bank loan facilities totalling $800m (A$1.19bn) for the Darwin LNG joint venture (JV), in which the company holds a 43.43% interest.
The financing includes a $350m seven-year loan and a $450m 12-year loan, both partially amortising and maturing in 2031 and 2036, respectively.
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The loans are senior-secured by Darwin LNG, with shareholders providing security over their shares.
Besides Santos, other partners in the project include Eni, Inpex, Jera, SK E&S and Tokyo Gas.
The Darwin LNG facility, operational since 2006, is set to undergo life extension works following the cessation of LNG production from the Bayu-Undan field.
The proceeds from the facilities will be directly utilised to fund the necessary life extension works.
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By GlobalDataSantos said the facility in the Northern Territory has been a key player in processing LNG for overseas markets and is now preparing for a new phase.
The life extension works will enable the plant to extend its design life and provide gas processing and marine loading services to the Barossa JV, which will supply feed gas from a project located approximately 300km north of Darwin.
Santos CEO Kevin Gallagher said: “The debt raised by the Darwin LNG joint venture is wholly consistent with our strategy of securing flexible, long-duration and competitively priced funding.
“With these facilities in place, Darwin LNG is well-funded to complete the life extension works scheduled for mid-2025 and it positions Darwin LNG to consider future expansion of this important infrastructure, including through the potential provision of third-party carbon capture services in Darwin.”
In a separate development, Santos finalised a sale and purchase deed last month for the transfer of a 16% interest in the Bayu-Undan upstream project to TIMOR GAP, the state-owned oil and gas company of Timor-Leste.
Looking ahead, Santos has expressed plans to repurpose the Bayu-Undan site into a commercial carbon capture and storage project after the cessation of petroleum production.
