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SANTOS LIMITED — Capital/Financing Update 2021
Apr 29, 2021
65872_rns_2021-04-29_dca3b309-18d7-4a25-bebe-e75f45e75379.pdf
Capital/Financing Update
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ASX / Media Release
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30 April 2021
Santos completes Bayu-Undan and Darwin LNG sell-down to SK
Santos today announced it had completed the sell-down of 25 per cent interests in BayuUndan and Darwin LNG to SK E&S, which is also a partner in Barossa.
The sell-down resulted in net funds to Santos of US$186 million at completion, being the sale price of US$390 million less the cashflows from the 25 per cent interests from the effective date of 1 October 2019 to completion.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said he was delighted to formally welcome Barossa joint venture partner SK E&S as a partner in BayuUndan 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,” Mr 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 future development of zero-emissions hydrogen.
Completion of the sell-down to SK E&S sees Santos’ interest in Bayu-Undan and Darwin LNG change to 43.4 per cent, and Santos remains operator of both assets. The remaining interests are held by SK E&S (25 per cent), INPEX (11.4 per cent), Eni (11 per cent), JERA (6.1 per cent) and Tokyo Gas (3.1 per cent).
Santos is also operator of the Barossa project and announced the final investment decision to proceed with the project in March 2021. First gas from Barossa to backfill Darwin LNG is expected in the first half of 2025.
Santos and JERA continue to progress the binding sale and purchase agreement for JERA to acquire a 12.5 per cent interest in Barossa.
Ends.
This ASX announcement was approved and authorised for release by Kevin Gallagher, Managing Director and Chief Executive Officer.
Media enquiries James Murphy +61 (0) 478 333 974 [email protected]
Investor enquiries
Santos Limited ABN 80 007 550 923 GPO Box 2455, Adelaide SA 5001 T +61 8 8116 5000 F +61 8 8116 5131 www.santos.com
Andrew Nairn +61 8 8116 5314 / +61 (0) 437 166 497 [email protected]
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