Santos has executed a conditional agreement to sell its 42.86 per cent operated interest in the Mahalo Joint Venture, located in Queensland’s Bowen Basin, to Comet Ridge. The agreement includes an upfront payment of $40 million, with potential contingent payments of up to $20 million tied to future production milestones. Santos is an Australian oil and gas company. It explores, develops, and produces natural gas and crude oil, supplying energy to homes and businesses across Australia and Asia.
In a separate transaction, Santos has finalised the sale of its 42.71 per cent interest in the Petrel fields and its 100 per cent stake in the Tern fields, both situated in the Bonaparte Basin off the northern coast of Australia, to Eni Australia. These divestments are expected to provide Santos with immediate cash flow and contingent considerations, while also reducing the company’s long-term decommissioning liabilities.
Santos’ chief executive officer, Kevin Gallagher, stated that the company’s strategic focus remains on the successful execution of the Barossa and Pikka projects. The company is also dedicated to advancing growth opportunities by leveraging its existing operational infrastructure and expertise.
The divestment of the Mahalo Joint Venture and the Petrel and Tern fields aligns with Santos’ strategy to streamline its portfolio and concentrate on core assets. The company is focusing on projects that offer significant growth potential and contribute to its long-term sustainability.
