ConocoPhillips has entered into an agreement to sell the subsidiaries that hold its Australia-West assets and operations to Santos for US$1.39 billion.
The subsidiaries hold the company’s 37.5 percent interest in the Barossa project and Caldita Field, its 56.9 percent interest in the Darwin LNG facility and Bayu-Undan Field, its 40 percent interest in the Poseidon Field, and its 50 percent interest in the Athena Field. ConocoPhillips will retain its 37.5 percent interest in the Australia Pacific LNG project and operatorship of that project’s LNG facility.
“We are pleased that Santos recognises the value of the existing business as well as the opportunity to develop Barossa and thereby continue Darwin LNG’s operations for another 20-plus years,” said Matt Fox, executive vice president and chief operating officer.
Production associated with the assets being sold was approximately 50 thousand barrels of oil equivalent per day (MBOED) for the first half of 2019 and proved reserves were approximately 39 million barrels of oil equivalent (BOE) at year-end 2018.
The date for the transaction will be Jan. 1, 2019 but the deal is subject to regulatory approval and other specific conditions precedent. The sale is expected to be completed in the first quarter of 2020.