Santos downgrades stake in Timor Sea and Darwin assets for $500m

Australia’s second largest oil and gas producer Santos (ASX:STO) has successfully snapped up $501 million fly offloading a 25 per cent stake in BayuUndan and Darwin LNG.

Under the agreement, South Korean energy giant SK Group will own a 25 per cent interest in assets at the gas field in the Timor Sea and the liquefaction plant in the Northern Territory.

The interest reduction brought the Australian energy heavyweight’s stake holding to 43.4 per cent, as Santos retains its position as the primary operator of the assets.

The sale has generated around $239 million in net funds to Santos

The company commented on the deal, “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”

This marks the second collaboration between the Australian and South Korean energy giants. The Korean conglomerate’s energy arm SK E&S previously formed a partnership with Santos for the development of the US$3.6 billion Barossa gas and condensate project.

Shares in Santos (ASX:STO) are trading 0.3 per cent lower at $7.03
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Source: Finance News Network