Santos divests part stake in Timor Leste project
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The news: A consortium led by oil and gas producer Santos has divested a part stake in the Bayu Undan upstream project in favour of Timor Leste’s state energy company.
The numbers: Under the deal, the Bayu Undan joint venture — comprising oil and gas majors Santos, SK E&S, Inpex, ENI, and Tokyo Timor Sea Resources have transferred a 16% stake in favour of Timor GAP.
As a result, Santos’ share has dropped to 36.5% from 43.4%.
The context: Santos managing director Kevin Gallagher said the transaction was indicative of the business’ commitment to a long-term partnership with Timor Leste. The Bayu Undan upstream project comprises an offshore petroleum field, as well as offshore production and processing facilities in Timor Leste.
The project supplies gas to the Darwin LNG plant through a 500km pipeline. Santos has previously said a production sharing contract extension up to 30 June 2027 has been confirmed.
The deal comes after long drawn negotiations, with media reports indicating the Timor Leste government warned Santos it could lose control of the project if it did not agree to part with a share.
The source: ASX announcement
