The acquisition is valued at US$1.29 billion (AU$1.89 billion) plus a $75 million (AU$110 million) contingent payment subject to a final investment decision on Barossa.
Santos said the value accretive acquisition of operating interests in long-life, low cost natural gas assets and strategic LNG infrastructure is consistent with its core asset growth strategy.
To increase partner alignment, Santos is prepared to sell down equity in Barossa and Darwin LNG to a target ownership of 40-50 per cent.
Barossa partner SK E&S has signed a letter of intent to acquire a 35 per cent interest in Bayu-Undan and Darwin LNG, while Santos is also in discussions with Darwin LNG joint venture partners for equity in Barossa.
Santos Managing Director and CEO Kevin Gallagher said Santos has a long-established relationship with ConocoPhillips, which has operated its northern Australia natural gas assets for many years.
“Santos was a founding partner with ConocoPhillips in Darwin LNG, which has been operating since 2006,” said Mr Gallagher.
“This acquisition delivers operatorship and control of strategic LNG infrastructure at Darwin, with approvals in place supporting expansion to 10 mtpa, and the low cost, long life Barossa gas project.”
The transaction will continue to strengthen the company’s offshore operating and development expertise and capabilities to drive growth in offshore northern and Western Australia.
For more information visit the Santos website.
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