Santos will sell its 25% stake in the Bayu-Undan field, off Australia’s coast. Credit: ConocoPhillips Company.

Australian energy firm Santos has agreed a $390m deal to sell assets to South Korean energy group SK E&S. Santos will sell a 25% stake in the Darwin LNG facility and the Bayu-Undan gas field, offshore Northern Australia.

The deal was made in October 2019, but was announced on Thursday. It is conditional on the purchase of  ConocoPhillips’ Australia-West assets and operations for $1.39bn, announced in October last year. The deal is also subject to other third-party consents and regulatory approvals, as well as a final investment decision on the Barossa development project.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Santos will receive around $120m of cash flow from the interests, from 1 January 2019 to 1 October 2019.

Santos managing director and CEO Kevin Gallagher said: “Santos continues to build alignment between the Darwin LNG and Barossa joint ventures through discussions with Darwin LNG participants and others to acquire equity in Barossa.

“We are in advanced discussions to sell-down equity in Barossa to a target ownership of around 40% to achieve increased partner alignment.”

SK E&S already owns a 37.5% interest in the Barossa offshore development project that will backfill Darwin LNG.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Gallagher added: “Santos expects to take a final investment decision for the development of Barossa following completion of the ConocoPhillips acquisition and once all necessary technical, engineering and commercial contracts are in place, including the processing agreement with Darwin LNG, to allow the project to proceed subject to market conditions.”

Credit Suisse (Australia) and JB North act as financial advisors while Allens is the legal advisor to Santos for the transaction.

Earlier this month, ConocoPhillips awarded a contract to engineering firm Subsea 7 for the barossa project. The wngineerign company will supply the Barossa project with infield flowlines and subsea umbilicals, risers and flowlines (SURF) infrastructure.