Santos divests two non-core assets to Comet Ridge, Eni Australia
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The news: Santos has announced it will divest two non-core assets as part of its portfolio optimisation strategy.
The numbers: The oil giant has executed a conditional sale and purchase agreement to divest its 42.86% interest in the Mahalo Joint Venture in Queensland's Bowen Basin to ASX small cap Comet Ridge. The deal includes a $40 million upfront consideration and up to $20 million in contingent payments linked to production milestones.
Santos has also completed the divestment to Eni Australia of its 42.71% interest in the Petrel fields and 100% in the Tern fields in the Bonaparte Basin offshore northern Australia.
The context: Santos managing director and CEO Kevin Gallagher said the transactions monetise pre-development assets that are not near-term priorities in the company's capital allocation framework.
What they said: "I am pleased to agree commercial terms with our existing partners that will allow them to progress the development of these assets, unlocking future supply for the Australian domestic gas market," Gallagher said.
"These two transactions reflect our commitment to capital discipline to deliver sustainable and competitive shareholder returns."
The source: ASX
