JAKARTA (TheInsiderStories) – Australia’ energy producer, Santos Ltd., announced it had signed a letter of intent to sell a 12.5 percent interest in Barossa offshore development project to Japanese firm, JERA, said the company on Thursday (04/16). The buyer already has a 6.1 percent interest in Darwin LNG Pty. Ltd.
According to Santos’ managing director and CEO, Kevin Gallagher, his company with JERA further builds partner alignment and follows the recent agreement to sell a 25 percent interest in Darwin LNG to SK E&S Co.Ltd. The South Korean company already owns a 37.5 percent interest in the Barossa project.
Last year, Santos has agreed a A$390 million (US$248.41 million) deal to sell assets to SK E&S. The company will sell a 25 percent stake in the Darwin LNG and the Bayu-Undan gas field, located in offshore Northern Australia and has received around $120 million of cash flow from the interests.
“We are in advanced discussions to sell-down equity in Barossa to a target ownership of around 40 percent to achieve increased partner alignment,” said Gallagher in an official statement.
Following the completion of the US-based ConocoPhillips‘ northern and Timor Leste acquisition and the sell-downs to JERA and SK E&S, Santos will hold a 43.4 percent interest in Darwin LNG and a 50 percent interest in Barossa, he adds.
The Barossa Project is a gas and light condensate field located offshore about 300 kilometers north of Darwin, Northern Territory. The Project is a Joint Venture between ConocoPhillips Australia Barossa Pty. Ltd. (37.5 percent), SK E&S Australia Pty. Ltd. (37.5 percent) and Santos Offshore Pty. Ltd. (25 percent).
ConocoPhillips Australia believes Barossa is a leading candidate to backfill the Darwin LNG facility when it will no longer be economic to produce gas from the Bayu-Undan field. Barossa would ensure continued operation of the DLNG facility for a further 20 plus years, providing ongoing economic and social benefits to Darwin.
In March 2018, Timor-Leste and Australia signed a new treaty which established new maritime boundaries for the Timor Sea. When the treaty enters into force, the Bayu-Undan gas field will be entirely within Timor-Leste waters.
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