Santos completes ConocoPhillips northern Australia acquisition. Santos boss Kevin Gallagher says gas has a big future as the company inked a $2.2 billion deal to buy a range of northern Australian assets from the international oil and gas company ConocoPhillips. Santos Ltd. (South Australia Northern Territory Oil Search) is an Australian energy company, the country's second-largest independent oil and gas producer. Wood Mackenzie senior analyst David Low said: "This is a logical and attractive transaction for a number of reasons. Offshore Energy Today Staff Santos last week announced it has completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265 billion plus an increased contingent payment of US$200 million subject to a final investment decision (FID) on Barossa. The two companies in October 2019 struck a deal for Santos to acquire ConocoPhillips’ northern Australia business with operating interests in Darwin LNG, Bayu-Undan, Barossa, and Poseidon for US$1.39 billion, plus a $75 million contingent payment subject to FID on … Santos buying ConocoPhillips’ northern Australia business October 14, 2019, by Offshore Energy Today Australian oil and gas company Santos is set to buy ConocoPhillips’ northern Australia business for $1.39 billion-plus contingent payments. In a move to better align ownership of Darwin LNG and the fields that feed it, Santos said it is looking to cut its stakes overall to about 40%-50%, down from 68.4% stake in Darwin LNG and Bayu-Undan and 62.5% in Barossa following the acquisition. The fields, about 700km north of Darwin, contain an estimated 3.5 trillion cubic feet of gas but are burdened by carbon dioxide levels of more than 10 per cent. ConocoPhillips has agreed to sell its northern Australian business to its partner Santos for $1.39 billion, in a deal that will boost the Australian oil and gas group's output by 25%. There has been speculation for several years that the assets were for sale, as flagged by this column in 2015. The deal, set to close in the first quarter of 2020, is expected to boost Santos' earnings per share by 16% and increase its production by 25% in 2020, the company said. At the same time, Santos said it is aiming to line up contracts for 60%-80% of LNG volumes for more than 10 years before taking a final investment decision on Barossa -- the first time it has publicly spelled out a target for contracts. It plans to fund the whole acquisition out of cash and new debt. Australian gas major Santos (ASX: STO) has inked a US$1.39 billion (A$2.05 billion) deal to buy the northern Australian oil and gas assets of global energy giant, ConocoPhillips.. Santos said the deal, announced to the market today, is expected to lift the company’s earnings per share by about 16% and boost its output by about 25%. Santos, which owns the other 40 per cent, also would not comment, referring all questions to operator ConocoPhillips. U.S. oil company ConocoPhillips has completed the sale of its A ustralia-West assets and operations to Australia’s Santos. 192. We are also in discussions with buyers for Barossa LNG volumes.”. Credit Suisse (Australia) Limited and J.B. North & Co. acted as financial advisors to Santos and Allens acted as legal advisor to Santos. Santos’ interest in the Barossa project to backfill Darwin LNG increases to 62.5%. © 2021 CNBC LLC. The deal, which was not unexpected, marks the second major acquisition by Santos in less than a year, following a sharp turnaround in its fortunes under Managing Director Kevin Gallagher and pushed its shares up 7% in early trade on Monday. 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. The move comes as the Bayu-Undan gas field that feeds Darwin LNG is set to run dry in 2022 and the project's owners near a decision on which field to develop next to keep the plant running. Der Bericht untersucht die Faktoren, die das Wachstum des Marktes beeinflussen, sowie die … Santos acquires the northern Australia assets of ConocoPhillips. 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 two companies in October 2019 struck a deal for Santos to acquire ConocoPhillips’ northern Australia business with operating interests in Darwin LNG, Bayu-Undan, Barossa, and Poseidon for US$1.39 billion, plus a $75 million contingent payment subject to FID on Barossa. Following completion of the previously announced sell-downs to SK E&S and JERA, Santos will hold a 43.4% interest in Darwin LNG and a 50% interest in Barossa,” Mr Gallagher said. Santos acquires ConocoPhillips’ northern Australia assets. While quitting the Darwin LNG plant, which it opened in 2006, and gas fields off northern Australia, ConocoPhillips said it would hold on to its stake in Australia Pacific LNG, which it runs in the state of Queensland. Santos has completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265 billion plus an increased contingent payment of US$200 million subject to a Final Investment Decision (FID) on Barossa. Darwin LNG is the second-oldest of Australia's 10 LNG plants. The Bayu-Undan fields, which … ConocoPhillips has agreed to sell its northern Australian business to its partner Santos for $1.39 billion. Der Bericht Coal Seam Gas (CSG) Markt 2020-2025 befasst sich mit der Bewertung des aktuellen Branchenmarktes Coal Seam Gas (CSG). ConocoPhillips has agreed to sell its northern Australia assets and operations, which includes its stake in the Barossa project and the Darwin LNG facility, to Santos for $1.39bn. We are delighted to assume operatorship and continue to progress the Barossa project so that a final investment decision can be made when market conditions permit.”. Santos today is pleased to announce it has completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265 billion plus an increased contingent payment of US$200 million subject to a final investment decision (FID) on Barossa. All Rights Reserved. Worth noting, Santos is also a joint venture partner in Darwin LNG with an 11.5% interest. “We welcome the ConocoPhillips’ Australia-West employees to Santos and look forward to getting on with the process of integrating our two businesses to create one high performing team,” Mr Gallagher said. The purchase price at completion was fully-funded from available cash together with US$750 million of new two-year acquisition debt. 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. The assets are both onshore and offshore, and Santos expects the acquisitions will lift the company's earnings per share by about 16 per cent. Join us and your talent, skills and ideas will have a direct impact on results as we thrive and improve together. 29 May, 2020 . Data is a real-time snapshot *Data is delayed at least 15 minutes. Santos owns 11.5 per cent of the gas export facility (ConocoPhillips owns a 57 per cent stake) and 25 per cent of the Barossa field (the US giant owns 37.5 per cent). Santos has agreed to pay a further $75 million contingent on a final investment decision, expected by early 2020, on developing the Barossa asset to supply Darwin LNG. Santos today is pleased to announce it has completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265 billion plus an increased contingent payment of US$200 million subject to a final investment decision (FID) on Barossa. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Globaler Coal Seam Gas (CSG) Markt 2020 Top Key Player | Exxon Mobil(XTO Energy), BP, ConocoPhillips, Australia Pacific LNG, Santos. ConocoPhillips COP recently completed the divestment of northern Australia and Timor-Leste assets to Australian oil and gas company Santos under a revised deal. Image credit: ConocoPhillips Australia. 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. Got a confidential news tip? At completion, the net settlement amount was US$655 million, lower than the previously forecast amount of US$800 million, comprising the revised firm purchase price of US$1.265 billion less cash in the acquired business from the effective date of 1 January 2019 to completion with customary adjustments. ConocoPhillips said it will sell most of its Australia business for $1.4 billion to the Australian firm Santos Ltd. as the Houston oil and gas producer … Santos says it will buy ConocoPhillips’s stakes in assets in northern Australia for $US1.39 billion, plus a further $US75 million contingent on a final investment decision being … “Santos continues to build alignment between the Darwin LNG and Barossa joint ventures. Due to recent market volatility and the deferral of Barossa FID, Santos and ConocoPhillips agreed to decrease the previously announced US$1.39 billion upfront payment at completion to US$1.265 billion and increase the contingent payment on Barossa FID from US$75 million to US$200 million. The sale of interests in Bayu-Undan and Darwin LNG to SK E&S, and in Barossa to JERA, are subject to third-party consents, regulatory approvals and an FID decision on Barossa. It consolidates existing equity participation across … "While we believe the Darwin LNG backfill project remains among the lower cost of supply options for new global LNG supply, this transaction allows us to allocate capital to other projects that we believe will generate the highest long-term value to ConocoPhillips," Chief Operating Officer Matt Fox said in a statement. ConocoPhillips Completes Sale of Interests in Australia-West Download.PDF | Download Tetum translation.PDF HOUSTON – ConocoPhillips (NYSE: COP) today announced the completion of the sale of its subsidiaries that hold its Australia-West assets and operations to Santos. innovate Dezember 20, 2020. (Credit: Santos Ltd) Santos has closed the previously announced acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets for a revised price of $1.26bn. Santos holds a 25% interest in the Barossa-Caldita joint venture along with partners ConocoPhillips (37.5% and operator) and SK E&S (37.5%). At its nearest points, the survey area is located 23.5 km from the west coast of King Island and 26 km from the Victorian coast. ConocoPhillips will continue to support the FID process for Barossa. "Discussions to date have demonstrated strong interest in Barossa LNG, given it is a brownfield upstream development allocated close to North Asian demand," Gallagher said. A Division of NBCUniversal. HOUSTON – ConocoPhillips (NYSE: COP) today announced it has entered into an agreement to sell the subsidiaries that hold its Australia-West assets and operations to Santos for $1.39 billion, plus customary closing adjustments. We want to hear from you. ConocoPhillips has completed the sale of its northern Australian business to Santos for $1.39 billion, a major boost to the company’s balance sheet … It is already in talks with other Darwin LNG partners, which include Japan's Inpex Corp, Italy's Eni SpA, Japan's JERA and Tokyo Gas, to sell equity in Barossa and Darwin LNG. Additionally, ConocoPhillips will be paid $75m after a final investment decision is taken on the Barossa development project in which it has an operating stake of 37.5%. ConocoPhillips' press release did not list its advisers on the Australia-West deal. Houston-based ConocoPhillips (NYSE: COP) has completed the sale of its Australia-West assets and operations to Australia-based oil and gas producer Santos. ConocoPhillips has agreed to sell its northern Australian business to its partner Santos for $1.39 billion, in a deal that will boost the Australian oil and gas group’s output by 25%. Santos announced on Monday it would pay $US1.39 billion ($2.05 billion) to buy the ConocoPhillips assets in northern Australia, along with an extra payment of $U$75 million, contingent on a … The deal will boost the Australian oil and gas group's output by 25%. ConocoPhillips reported Sunday that it has agreed to sell the subsidiaries holding its Australia-West assets and operations to Santos Limited for US$1.39 billion, plus closing adjustments. “We are continuing to advance discussions with other parties for the sale of further equity in the Barossa project in line with our previously stated target ownership level of around 40% to achieve increased partner alignment and prudent future allocation of growth capital. It said its Barossa partner, SK E&S of South Korea, has signed a letter of intent to buy a 25% stake in Darwin LNG and Bayu-Undan. “As a foundation partner in Bayu-Undan and Darwin LNG, and an existing partner in Barossa, we know these assets well. ConocoPhillips Australia SH1 Pty Limited (ConocoPhillips Australia) is proposing to conduct the Sequoia 3D marine seismic survey activity in Commonwealth Waters. "The acquisition of these assets fully aligns with Santos' growth strategy to build on existing infrastructure positions while advancing our aim to be a leading regional LNG supplier," Gallagher said in a statement. Australian oil and gas company Santos has executed documentation to enter into a new US$750 million syndicated bank loan, to refinance existing debt facility established for the acquisition of ConocoPhillips’ northern Australian and Timor-Leste assets. Sign up for free newsletters and get more CNBC delivered to your inbox. ConocoPhillips has completed the sale of its subsidiaries that hold its Australia-West assets and operations to Santos for a reduced purchase … Santos seeks to work with contractors and suppliers who are economically, environmentally and socially responsible. The acquisition delivers operatorship and control of a high quality portfolio of low-cost, long-life natural gas assets and strategic LNG infrastructure. 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 announced today its plans to acquire ConocoPhillips’s northern Australian assets. A liquefied natural gas (LNG) tanker operated by Energy Advance Co., a unit of Tokyo Gas Co., is moored at ConocoPhillips' LNG facilities in Darwin, Australia, on Wednesday, April 11, 2012. The net settlement amount is before any sell-downs of interests owned by Santos in the acquired assets. Get this delivered to your inbox, and more info about our products and services. Sergio Dionisio | Bloomberg | Getty Images. Santos will acquire ConocoPhillips’ interests in northern Australia for total consideration of US$1.465 billion, comprising a US$1.39 billion upfront payment at completion and a US$75 million contingent payment once a final investment decision on Barossa is made. 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