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ConocoPhillips to sell interests in Australia-West for $1.39 Billion

Author : Pankaj Singh | Published Date : 2019-10-14 

The business world is in a need for strong partnerships and investments to drive new projects and stimulate energy resource as efficiently as possible. Acquisition with another companies can add efficiency at every stage of the energy value chain. However, with growing need for investment in new energy projects, numerous companies are now selling their assets to increase business reach.

A similar instance occurred recently when ConocoPhillips, an American multinational energy corporation, reportedly inked an agreement with Santos Ltd. to sell its business that hold its Australia-West operations and assets for USD 1.39 billion. In addition to this, ConocoPhillips will also receive an amount of USD 75 million for its investment decision on the Barossa development project.

For the record, the subsidiaries have the company’s 37.5 percent interest in the Caldita Field and Barossa project, its 56.9 percent interest in the Bayu-Undan Field and Darwin LNG facility, and its 40 percent and 50 percent interest in the Poseidon Field and Athena Field respectively.

Nevertheless, the company is said to retain its 37.5 percent interest in the Australia Pacific LNG project and the operatorship of its LNG facility. Whereas, proceeds obtained from this deal would be used for corporate purposes.

Matt Fox, Executive Vice President and Chief Operating Officer, ConocoPhillips, said that the company feels extremely proud of its work in Australia-West for more than two decades. Santos has acknowledged the value of the current business as well as the chance to develop Barossa, and thereby continues Darwin LNG’s operations for more two decades.

Fox added that the company believes that the Darwin LNG backfill project would continue to be the lowest cost of supply choice for new global LNG supply and this transaction enable it to allocate capital for other projects that would generate the highest long-term value for the company.

Reports claim that production associated with the assets being sold was around 50 MBOED (thousand barrels oil equivalent per day) for the first six months of 2019 and proved reserves were around 39 million BOE at year-end 2018. Moreover, the transaction is expected to be completed in the first quarter of 2020 subject to regulatory approval and other conditions.

Source Credit - http://www.conocophillips.com/news-media/story/conocophillips-announces-agreement-to-sell-interests-in-australia-west-for-1-39-billion/



About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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