Santos Ltd., Adelaide, has followed through with a decision to sell its 40% stake in the Evans Shoal natural gas field in permit NTP/48 in the Timor Sea.
Santos did not disclose the prospective buyer, saying only that it is a major international exploration and production company already operating in Australia.
Santos expects to receive as much as $350 million. It will take a cash consideration of $250 million plus a contingent future cash payment of up to $100 million pivoting on a final investment decision being reached to develop the field and the level of 2P reserves booked for the field at that point.
Santos is aiming to close the deal by yearend.
Santos’ previous attempt to sell the stake to Magellan Petroleum for cash over several stages fell through earlier this year when Magellan struggled to come up with funds to complete the purchase.
Evans Shoal has a high carbon dioxide content and Magellan was hoping to capitalise on this by establishing a methanol development.
Other joint venture partners in Evans Shoal are Petronas 25%, Shell 25%, and Osaka Gas 10%.