Santos to sell 12.5% interest in Barossa project to JERA

Santos Ltd., Adelaide, has signed a letter of Intent to sell another 12.5% interest in the Barossa-Caldita gas development project in the Timor Sea to JERA.

JERA already has a 6.1% interest in the Darwin LNG plant currently being supplied by gas from Bayu Undan field.

The agreement advances planned partner alignment between Darwin LNG and the Barossa joint ventures for the development of Barossa as backfill for Darwin LNG, Santos said.

The deal with JERA follows a recent agreement by Santos to sell a 25% interest in Darwin LNG to South Korean Barossa partner SK E&S (OGJ Online, Mar. 20, 2020).

After completion of the ConocoPhillips acquisition announced in October 2019 and sell downs to JERA and SK E&S, Santos will hold a 43.5% interest in Darwin LNG and a 50% interest in Barossa-Caldita fields (OGJ Online, Oct. 14, 2019).

Discussions with other parties continue for the sale of further equity in the Barossa project to bring ownership to about 40%.

The JERA deal is subject to negotiation and execution of a binding sale and purchase agreement along with completion of the acquisition of ConocoPhillips’s northern Australian and East Timor portfolio, as well as third party consents, regulatory approvals, and a final investment decision on Barossa development.