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    Santos completes Bayu-Undan, Darwin LNG sell down

Summary

Completion of the sell-down to South Korea's SK E&S sees Santos’ interest in Bayu-Undan field and Darwin LNG change to 43.4%.

by: Shardul Sharma

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Santos completes Bayu-Undan, Darwin LNG sell down

Australia's Santos on April 30 said it had completed the sell-down of 25% interest in Bayu-Undan field in the Timor Sea and Darwin LNG project to South Korea's SK E&S, which is also a partner in Barossa.

The sell-down resulted in net funds to Santos of US$186mn at completion, being the sale price of US$390mn less the cashflows from the 25% interests from the effective date of October 1, 2019, to completion, the company said.

Santos and SK E&S have also signed a memorandum of understanding to jointly investigate opportunities for carbon-neutral LNG from Barossa, including collaboration relating to Santos’ Moomba CCS project, bilateral arrangements for carbon credits and potential future development of zero-emission hydrogen.

Completion of the sell-down to SK E&S sees Santos’ interest in Bayu-Undan and Darwin LNG change to 43.4%. Santos remains the operator of both assets. The remaining interests are held by SK E&S (25%), Inpex (11.4%), Eni (11%), Jera (6.1%) and Tokyo Gas (3.1%).

Santos is also the operator of the Barossa project and announced the final investment decision to proceed with the project last month. First gas from Barossa to backfill Darwin LNG is expected in the first half of 2025.