Santos sells stake in Barossa LNG project to JERA for $300m

Santos sells stake in Barossa LNG project to JERA for $300m

Santos said today that it has signed a $300 million deal to sell a 12.5% interest in the Barossa project in Australia to Japan’s JERA.

The effective date of the sale of the Barossa interest is 31 March 2020 and completion is expected in the first half of 2022. Upon completion, JERA will reimburse Santos for its share of capital expenditure on the project from the effective date to completion, with the total consideration due to Santos at completion expected to be about $300 million.

JERA is an existing partner in Darwin LNG, where gas from Barossa will be processed for export, with a 6.1% stake. The signing of the Barossa sale further builds partner alignment between the Darwin LNG and Barossa joint ventures for the development and processing of Barossa gas through the Darwin LNG facilities, said Santos.