Santos is officially the owner of ConocoPhillips’ oil and gas assets in northern Australia and Timor-Leste after completing a $US1.265 billion ($1.9 billion) deal.
Due to an unstable market environment and the deferral of a final investment decision (FID) at the Barossa project, Santos and ConocoPhillips agreed to decrease the previously announced $US1.39 billion upfront payment to $US1.265 billion.
They also agreed to increase a contingent payment on the Barossa FID from $US75 million to $US200 million.
Santos gains operatorship and control of a high quality portfolio of low-cost, long-life natural gas assets and strategic liquified natural gas (LNG) infrastructure through the acquisition.
The company’s interest in Bayu-Undan and Darwin LNG increases to 68.4 per cent and will provide a boost to its 2020 production, with the interest in the Barossa project to backfill Darwin LNG increasing to 62.5 per cent.