Mitsui & Co. Ltd. has agreed to purchase 35% stake in Australia’s Kipper gas-condensate field from Santos Ltd. for $520 million (Aus.).
Kipper field lies in 100 m of water in the Gippsland basin, about 45 km offshore Victoria (OGJ Online, Mar. 3, 2009). Mitsui said production is expected to start in 2016.
Operator Esso Australia Resources and BHP Billiton Petroleum each own 32.5%. Recoverable gas reserves are estimated at 620 bcf, while condensate and LPG reserves are estimated at 30 million bbl.
The transaction will be completed after government approvals and partner waiver of preemptive rights.
Mitsui said it believes Australia’s east coast requires new investments in developing gas resources to meet demand.
Most recently Santos sold its interest in Stag field offshore Western Australia (OGJ Online, Nov. 2, 2015).