Australian independent oil and gas producer Santos has signed a letter of intent (LoI) to sell a 12.5% stake in the Barossa gas field in northern Australia to JERA, the joint venture between Japanese power utilities TEPCO and Chubu Electric. The gas field is being developed to secure gas supply for the 3.7 Mt/year Darwin LNG plant, in which the Japanese JV already owns a 6.1% stake. The transaction between Santos and JERA is conditioned to the completion by Santos of the acquisition of ConocoPhillips subsidiaries in Northern Australia and in Timor Leste. Once both deals are finalised, Santos will hold a 43.4% interest in Darwin LNG and a 50% interest in Barossa.
In October 2019, Santos 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 ConocoPhillips 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 by mid-2020.
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