The reduced purchase price on completion has a favourable impact on net debt and gearing, with net debt at completion estimated at US$3.75 billion and gearing at approximately 32%. The latest Santos news, articles, data and analysis from Australian Financial Review This is how it's supposed to happenWhat Australians did with their coronavirus stimulus paymentsHarry was 'desperate' for a meeting with the Queen before he and Meghan left the royal family, but it never happenedMeet the yacht families trading winter for Fiji's sunny shores despite coronavirusI'm an Australian health policy expert riding out the pandemic in Washington. The net settlement amount is before any sell-downs of interests owned by Santos in the acquired assets.The acquisition delivers operatorship and control of a high quality portfolio of low-cost, long-life natural gas assets and strategic LNG infrastructure. Santos also focuses on liquefied natural gas (LNG) strategy and has interests in four LNG projects in Australia. Santos’ interest in the Barossa project to backfill Darwin LNG increases to 62.5%.Santos Managing Director and Chief Executive Officer Kevin Gallagher said he was pleased to complete the acquisition which is fully-aligned with Santos’ strategy to build on existing infrastructure positions around Santos’ core assets.“As a foundation partner in Bayu-Undan and Darwin LNG, and an existing partner in Barossa, we know these assets well. "When you see a major player invest so heavily in the Territory, that bodes fairly well I think. "Santos hopes to use the Barossa gas field to backfill the Wickham Point facility when the Bayu-Udan gas field runs out in the next few years.Mr Gallagher said Santos was already talking with potential buyers for Barossa's gas. Trusted and independent source of local, national and world news. We say what people are thinking and cover the issues that get people talking balancing Australian and global moments — from politics to pop culture. "While the company maintains it is still too early to determine if gas from the Beetaloo and McArthur Basins would be sent through the Darwin facility, Mr Gallager said it was a key consideration in the purchase. Santos is one of the leading independent oil and gas producers in the Asia-Pacific region, supplying energy needs across Australia and Asia. "While it remains exactly unclear how the $65 million exploration spend will be made, the announcement has raised hopes of new opportunities for businesses across the Top End.Ms Cummings said her organisation would approach both companies in the coming months to promote the capabilities of local service providers.
Santos's chief executive officer and managing director, Kevin Gallagher, said it … The company this week announced plans to buy ConocoPhillips' north Australian gas assets for just over $2 billion, including the Wickham Point gas plant, Bayu-Udan gas field, and the Barossa and Poseidon gas prospects. I think it was also the amount of offshore resources already discovered over the years that are sitting stranded with no route to market," he said. "We have long-aspired to get this position in Darwin so that we can have a much bigger presence, that's something we are very excited about," he said. "Its a brownfield, upstream project, a backfill project. Santos’ interest in Bayu-Undan and Darwin LNG increases to 68.4% at completion and will provide a significant boost to 2020 production and cash flows. Ultimately that gives local businesses an opportunity to be part of that action. "Santos is very committed to working with all resource owners to help them develop the resources that can lead to expansion in Darwin. Post-completion, Santos’ balance sheet remains in a strong position with liquidity of US$3.1 billion, comprising cash of US$1.2 billion and committed undrawn debt facilities of US$1.9 billion.Santos has previously announced an agreement to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million and the signing of a letter of intent to sell a 12.5% interest in Barossa to JERA.“Santos continues to build alignment between the Darwin LNG and Barossa joint ventures. "Obviously work is ongoing in Queensland, but there appears to be an intent to commence exploration in the Territory, once regulatory processes and land tenure negotiations have been dealt with successfully," she said. "Its a fairly solid commitment from Santos, particularly coming on the back of their expansion into Conoco," she said.
Resources giant Santos is strengthening its grip on the north Australian gas sector, as it moves to secure billions of dollars worth of exploration and production investments in the Top End.The company this week announced plans to buy ConocoPhillips' north Australian gas assets for just over $2 billion, including the Wickham Point gas plant, Bayu-Udan gas field, and the Barossa and Poseidon gas prospects.Santos's chief executive officer and managing director, Kevin Gallagher, said it was a strategic acquisition.