PERTH (miningweekly.com) – Oil and gas major Santos has announced the sale of its noncore Asian portfolio of assets to Ophir Energy in a deal valued at $221-million.
ASX-listed Santos will 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 gasfield, 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 sale of the Asian assets further delivers on our undertaking to simplify our business and focus on our five core long-life natural gas assets in Australia and Papua New Guinea,” Santos MD and CEO Kevin Gallagher said on Thursday.
“We have always believed the Asian assets are a quality portfolio and are pleased to achieve an attractive outcome for our shareholders. Santos will work with Ophir to ensure a smooth transition, including the transfer of all the Santos employees to Ophir.”
Gallagher noted that the producing assets being sold were relatively late-life and were not prioritised for capital in the Santos portfolio.
Santos’ share of production from these assets in the first quarter of 2018 was 1.4-million barrels of oil equivalent.
Santos reported that proceeds from the sale of the Asian assets would be applied to further reduce the company’s net debt, which stood at $2.5-billion at the end of March.