The sale will result in Santos exiting from offshore Victoria. In March, the company completed the sale of its interest in the Kipper gas field for A$520 million ($395 million).
The assets sold to Cooper Energy include:
- 50% interest in the Casino-Henry gas project
- 50% interest in the Sole gas field and the Orbost gas plant
- 10% interest in the Minerva gas field and gas plant
- 100% interest in the Patricia-Baleen gas field.
Santos’ share of production from these assets in 1H 2016 was 5.2 petajoules of sales gas.
The total cash consideration is A$82 million, comprised of A$62 million ($47 million) at completion and a further milestone payment of A$20 million ($15 million) upon the earlier of a final investment decision on the Sole gas project or the receipt of cash proceeds from any sell-down by Cooper Energy of any of its interest in the sale assets.
Santos Managing Director and CEO Kevin Gallagher said: “This sale is in line with our stated objective to rationalize and shape our asset portfolio in order to become a low cost, reliable and high performance business.”
Completion of the transaction is expected early next year and is subject to customary consents and regulatory approvals.