Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Oil and gas giant, Santos (STO) has signed a letter of intent (LOI) to sell a 12.5 per cent interest of its Barossa project to Japanese company, JERA
  • Santos bought the ConocoPhillips’ northern Australia business for $2 billion last year, giving it control of Darwin LNG and Barossa, but has now sold some of its interest as it wants lower ownership of the two projects
  • Santos’ CEO Kevin Gallagher said this agreement follows the sale of 25 per cent interest in Darwin LNG to Korean company, SK E&S
  • This agreement will help progress the oil projects in the Northern Territory
  • The company will now hold a 43.4 per cent interest in Darwin LNG and said it expects to lower its current 50 per cent stake in Barossa down to 40 per cent
  • Santos is down 2.28 per cent on the market today, trading for $4.29 per share

Oil and gas giant, Santos (STO) has signed a letter of intent (LOI) to sell a 12.5 per cent interest of its Barossa project to Japanese company, JERA.

The Barossa project is located offshore about 300 kilometres North of Darwin. Santos bought the ConocoPhillips’ northern Australia business for $2 billion last year, giving it control of Darwin LNG and Barossa, but has now sold some of its interest as it wants lower ownership of the two projects.

JERA already has a 6.1 per cent interest in Darwin LNG. The signing of the LOI with JERA builds the relationship between the companies and the connection of Barossa being the backfill for Darwin LNG.

Santos Managing Director and CEO Kevin Gallagher said this agreement follows thesale of 25 per cent interest in Darwin LNG to Korean company, SK E&S.

The company will now hold a 43.4 per cent interest in Darwin LNG and said it expects to lower its current 50 per cent stake in Barossa down to 40 per cent.

Previously, Santos announced it was going to defer any financial decisions on Barossa due to COVID-19 and the drop in oil prices.

“Barossa remains an important project for Santos due to its brownfield nature and
low cost of supply, and we will continue to use this time to achieve alignment and seek to further strengthen the economics of the project,” Kevin added.

Santos is down 2.28 per cent on the market today, trading for $4.29 per share at 12:58 pm AEST.

STO by the numbers
More From The Market Herald

" BHP’s (ASX:BHP) FY22 best annual report in a decade, record dividends

Australia's largest mining company BHP (ASX:BHP) reports its best annual report in more than a decade…

" ACCC approves Woolworths (ASX:WOW) and MyDeal (ASX:MYD) acquisition

The ACCC is not opposed on the deal the MyDeal (ASX:MYD) takeover by Woolworths (ASX:WOW).
The Market Herald Video

" Insurance Australia (ASX:IAG) back to making profit in FY22

Insurance Australia (ASX:IAG) records a 181.3 per cent increase in net profits for the 2022 financial…

" Telstra (ASX:TLS) increases its dividend for the first time in seven years

Telstra (ASX:TLS) has increased its dividend for the first time in seven years despite posting a…