Santos will sell 25 per cent of the Darwin LNG facility and the Bayu-Undan gas field off Northern Australia for $US390 million ($A605 million), months after agreeing to buy ConocoPhillips’ business in the region.
The sale depends on the completion of the $US1.39 billion deal with ConocoPhillips, which Santos expects to follow with a final investment decision on developing the Barossa gas field.
Santos chief executive Kevin Gallagher said the sale to Barossa partner SK E&S of South Korea was a big step towards bringing Barossa gas into production through the Darwin LNG facilities.
The Bayu-Undan gas field, which feeds Darwin LNG, is set to run dry in 2022 and Santos is aiming to develop the Barossa field to keep the plant open.
South Korea’s SK E&S owns 37.5 per cent of Barossa, Santos said.
Last October, ConocoPhillips, which has been focusing on its US shale assets, said it would sell the Darwin LNG plant, which it opened in 2006, and gas fields off northern Australia to Santos.