By OGJ editors
HOUSTON, Aug. 26 -- Australian Santos Ltd. announced plans to buy the Houston-based Marathon Oil Co.'s unit Globex Far East Pty. Ltd. for $15.8 million.
Upon closing, the deal will increase Santos' interest in Stag oil field off Western Australia to 66.667% from 54.166%. The transaction also brings new exploration acreage for Santos in Carnarvon basin.
The Globex interests includes 12.5% interest in WA-15-L containing Stag oil field,
15% interest in WA-246-P containing the Corvus gas discovery, and 19% interest in WA-209-P containing the Reindeer gas discovery.
Santos has been a participant in Stag field since its June 1993 discovery. Production started in May 1998 with a peak rate of 30,000 b/d day reached in August 2000.
The acquisition will increase Santos' share of estimated oil production from Stag
in 2003 by 300,000 bbl and in 2004 by 500,000 bbl.
Last year, Marathon acquired Globex Energy Inc. of Houston in a $155 million deal to bolster its holdings in Alba field off Equatorial Guinea as well as in Stag field off Australia (OGJ, July 1, 2002, p. 30).
