Photo by: Bloomberg
PERTH (miningweekly.com) – Oil and gas major Santos has completed the $221-million sale of its noncore Asian portfolio of assets to Ophir Energy.
The deal was struck in May of this year, and would see Santos divest of its 31.87% interest in the Chim Sao and Dua oilfields, in Vietnam, the 67.5% interest in the Maleo and Peluang gasfields, in Indonesia, the 45% interest in the Oyong and Wortel gasfields, in Indonesia, the 20% interest in the Bestari oil discovery, in Malaysia, its 45% interest in two blocks in Bangladesh, and its 50% and 40% respective interests in two further blocks in Vietnam.
The ASX-listed company on Friday said that Santos has now received cash proceeds of $144-million at the completion, which represented the sale price of $221-million after standard adjustments, including net free cash flows generated by the assets, and received by Santos from the transaction effective date through to completion.
Santos has reduced its net debt to around $2.2-billion at the end of August, and this amount will be further reduced with the sale proceeds received from the Asian assets, leaving Santos well placed to reach its $2-billion net debt target by October, more than a year ahead of schedule.