Australia’s Santos stated Thursday it had signed a letter of intent to promote a 12.5 per cent stake within the Barossa challenge to Japan’s LNG buying and selling big JERA.
The Barossa fuel subject in northern Australia is being developed to safe feed fuel for the Darwin LNG plant through which JERA already has a 6.1 per cent curiosity.
Santos stated that signing of the take care of JERA advances associate alignment between the Darwin LNG and Barossa joint ventures for the event of Barossa challenge.
The Barossa subject is positioned offshore about 300 kilometres north of Darwin.
Santos bought the ConocoPhillips’ northern Australia enterprise for about $2 billion final yr, giving it management of Darwin LNG and Barossa.
“Following completion of the ConocoPhillips acquisition and the sell-downs to JERA and SK E&S, Santos will maintain a 43.four per cent curiosity in Darwin LNG and a 50 per cent curiosity in Barossa”, stated Santos CEO Kevin Gallagher.
He added that Santos continues talks with different events for the sale of additional fairness within the Barossa challenge, consistent with the corporate’s beforehand said goal possession degree of round 40 p.c.
Santos can also be in talks with patrons for Barossa volumes.
Santos introduced in March it could postpone a ultimate funding choice on Barossa because of the coronavirus outbreak and the drop in oil costs.
“Barossa stays an vital challenge for Santos resulting from its brownfield nature and low price of provide, and we’ll proceed to make use of this time to realize alignment and search to additional strengthen the economics of the challenge”, stated Gallagher.
The publish Santos to promote Barossa stake to Jera appeared first on Offshore Energy.