Santos completes Bayu-Undan and Darwin LNG sell-down to SK

SourceEnergy Voice
SectorOil & Gas

Australia’s Santos has completed the sell-down of 25% interests in Bayu-Undan and Darwin LNG to South Korea’s SK E&S, which is also a partner in the Barossa development.

The sell-down resulted in net funds to Santos of $186 million at completion, being the sale price of $390 million less the cashflows from the 25% interests from the effective date of 1 October 2019 to completion, reported Santos today.

Santos chief executive Kevin Gallagher said he “was delighted to formally welcome Barossa joint venture partner SK E&S as a partner in Bayu-Undan and Darwin LNG.”

“The sell-down to SK E&S is in-line with our strategy of disciplined growth while maintaining a strong balance sheet by managing equity levels in our growth projects consistent with disciplined capital management,” Gallagher said.

Santos and SK E&S have also signed a memorandum of understanding to jointly investigate opportunities for carbon-neutral LNG from Barossa, including collaboration relating to Santos’ Moomba CCS project, bilateral arrangements for carbon credits and potential more...