Santos Ltd (ASX:STO) is divesting 2 “non-core” assets, saying the moves reflect its “commitment to capital discipline”.
The company will sell its 42.86% operated interest in the Mahalo Joint Venture in Queensland’s Bowen Basin to Comet Ridge (ASX: COI) for about $60 million, comprising $40 million in upfront consideration and up to $20 million in contingent payments linked to production milestones.
Santos has also agreed to sell to Eni Australia its 42.71% interest in the Petrel fields and its 100% interest in the Tern fields in the offshore Bonaparte Basin in northern Australia for an undisclosed price.
“This has delivered cash and contingent consideration and reduced Santos’ future decommissioning exposure,” Santos said.
Chief executive Kevin Gallagher said the transactions “reflect our commitment to capital discipline to deliver sustainable and competitive shareholder returns”, adding that near-term priorities are to deliver Barossa and Pikka, and progress the next phase of growth opportunities.
Santos shares were last at $6.11. The stock, along with peers Woodside Energy (ASX: WDS), Beach Energy (ASX: BPT), Ampol (ASX: ALD) and Viva Energy (ASX: VEA), may come under pressure after Brent crude fell below US$60 per barrel in US trading.
Woodside was last at $23.99, Beach at $1.13, Ampol at $32.57 and Viva Energy at $2.15.