Santos seeks approval for US$2bn Narrabi Gas Project (Australia)

The New South Wales (NSW) Minister for Planning (Australia) has referred Santos’s Narrabri Gas Project to the Independent Planning Commission (IPC) for approval. The instiution has now 12 weeks to decide on the project’s approval once the NSW government officially transfer the assessment to the IPC. The US$2bn ​Narrabri Gas Project comprises the development of a coal seam gas field over two decade and supporting infrastructure. In February 2020, the NSW government committed to supply an additional 70 PJ/year of gas to the east coast market, from Santos' proposed Narrabri coal seam gas field, or from one or two LNG import terminal projects.

In addition, oil and gas producer Santos has agreed to sell a 25% stake in Darwin LNG and Bayu-Undan for US$390m to SK E&S, a subsidiary of South Korean SK Group. The transaction is conditioned by Santos of the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets. SK E&S already owns 37.5% of Barossa, which is set to supply Darwin LNG once the Bayu-Undan gas field run dry in 2022.

In October 2019, Santos has reached an agreement with ConocoPhillips to acquire ConocoPhillips subsidiaries in Northern Australia for US$1.39bn. The transaction would include a 37.5% share in the Barossa project and in the Caldita Field, a 56.9% share in the Darwin LNG production plant and in the Bayu-Undan Field, a 40% share in the Poseidon Field and a 50% share in the Athena Field. Assets being sold by Conoco Phillips produced around 50,000 boe/d during the first half of 2019, with proved reserves attaining 39 mboe at end-2018. ConocoPhillips would retain its 37.5% stake (and operatorship) in the Australia Pacific LNG project. The sale is subject to regulatory approval and is expected to be completed in the first quarter of 2020.