Adelaide-headquartered Santos Ltd. has agreed to sell all its remaining Victorian assets to fellow Adelaide company Cooper Energy Ltd. for up to $82 million (Aus.).
These include a 50% interest in the Casini-Henry gas development offshore Otway basin, 50% interest in the proposed $550-million Sole gas project in the offshore eastern Gippsland basin, 10% in the Minerva gas field and gas plant offshore Otway basin, and 100% interest in Patricia-Baleen gas field offshore Gippsland basin.
Santos began to withdrawal from Victoria in March this year with the sale of its interest in Kipper gas field in the offshore Gippsland basin to Mitsui E&P Australia for $520 million (OGJ Online, Mar. 3, 2016).
Santos’ share of production from the most recent asset sale fields during the first half of this year was 5.2 petajoules.
For Santos the sale is in line with its objective to rationalize and shape its portfolio to become a low cost, reliable business.
For Cooper Energy the acquisition provides it with a commanding position in the eastern Australian gas market and good leverage to find an equity partner in the Sole project.