Santos Ltd has introduced offers to divest what it stated had been non-core property onshore and offshore Australia to Comet Ridge Ltd and Eni SpA.
The Adelaide-based pure gas-focused producer stated in a web-based assertion it had already bought its 42.71 p.c stake within the Petrel area and 100% curiosity within the Tern area, each offshore northern Australia, to companion Eni.
The sale to Italy’s state-backed Eni “diminished Santos’ future decommissioning publicity”, Santos stated.
- Advertisement -
With Brisbane-based Comet Ridge, Santos penned an settlement to promote its 42.86 working stake within the Mahalo Joint Enterprise in Queensland’s Bowen Basin. Comet Ridge would change into the only real proprietor, already holding 57.14 p.c.
Comet Ridge stated individually, “By transferring to carry 100% fairness throughout all fuel blocks within the Mahalo Fuel Hub space, and by boosting our 2P + 2C reserve and useful resource base to over 670 PJ+, Comet Ridge will be capable to optimize the event of the entire of the Mahalo fuel useful resource”.
“The simplified possession construction will enable Comet Ridge to make sure Mahalo does make a major contribution to the east coast home fuel market at a essential time”, Comet Ridge added.
“Santos has now taken the Mahalo Fuel Challenge nicely into front-end engineering design, and we look ahead to choosing up that work within the first quarter of 2026 as we transfer in direction of a remaining funding resolution on improvement”, it stated.
Comet Ridge stated the transaction would give it full possession of two petroleum improvement leases that type stage 1 of the Mahalo Fuel Challenge, three potential industrial areas (PCAs) to the south (PCAs 302-304), two petroleum lease functions to the northwest (PLAs 1128 and 1132) and three prospecting consents to the northeast (ATPs 2061, 2063 and 2072).
“[T]he Mahalo Fuel Challenge curiosity acquired from Santos encompasses the ‘Shallows’ strata from floor right down to the bottom of the Decrease Mantuan Coal. Particularly, this includes PLs 1082 and 1083 and PCAs 302 to 304”, Comet Ridge stated. “The ‘Deeps’ will proceed to be held 50:50 by Santos and Australia Pacific LNG Pty Ltd.
“There was no new drilling exercise within the Mahalo Deeps for the reason that Lowesby 1 nicely was drilled in 1991”.
It stated the total takeover would take away “complexities” from securing funding for the Mahalo Fuel Challenge which have arisen from its lack of operatorship.
“Comet Ridge is in very productive discussions with a number of events that give the corporate confidence it would fund the acquisition and set the platform for the event of the Mahalo Fuel Hub on phrases that create worth for its shareholders”, Comet Ridge stated.
Santos stated the divestments reveal capital self-discipline, “monetizing pre-development property that aren’t near-term priorities in our capital allocation framework”.
“Santos’ near-term priorities are to ship Barossa and Pikka, and to progress the following section of progress alternatives that leverage our current working footprint”, stated Santos managing director and chief govt Kevin Gallagher.
To contact the creator, electronic mail jov.onsat@rigzone.com
What do you suppose? We’d love to listen to from you, be part of the dialog on the
Rigzone Power Community.
The Rigzone Power Community is a brand new social expertise created for you and all vitality professionals to Communicate Up about our trade, share information, join with friends and trade insiders and have interaction in knowledgeable neighborhood that can empower your profession in vitality.
