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Santos announces major acquisition of ConocoPhillips assets

14 Oct 2019 12:02 PM | Sonia Harvey (Administrator)

KEVIN Gallagher’s Santos will acquire a swathe of assets from ConocoPhillips in Northern Australia under a US$1.4 billion (A$2.05 billion) deal that will see the major gas producer take ConocoPhillips’ interest in the Darwin LNG project and associated fields.

Under the deal Santos will pick up a 37.5% stake in the Barossa project and Caldita field, a 56.9% interest in the Darwin LNG facility and the declining Bayu-Undan field which feeds it, a 40% stake in the Poseidon field and a 50% stake in the Athena field, for a total of US$1.39 billion plus a further $75 million upon a final investment decision of the Barossa development project.

Santos believes the acquisition of the assets would be "materially accretive" and would lift earnings per share by around 19% in 2020.

The company also said the deal would reduce its future breakeven oil price by roughly US$4 per barrel of oil equivalent.

 "This acquisition delivers operatorship and control of strategic LNG infrastructure at Darwin, with approvals in place supporting expansion to 10 million tonnes per annum, and the low cost, long life Barossa gas project," Gallagher said.

"These assets are well known to Santos. It also continues to strengthen our offshore operating and development expertise and capabilities to drive growth in offshore northern and Western Australia."

Source: Energy News Bulletin

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