Cooper buys Santos’ Victorian gas assets

A map of the Sole field.

A map of the Sole field.

Santos has announced the sale of its Victorian assets to Cooper Energy for cash consideration of up to $82 million.

The sale results in Santos exiting from offshore Victoria.

“This sale is in line with our stated objective to rationalise and shape our asset portfolio in order to become a low cost, reliable and high performance business,” said Santos Managing Director and CEO Kevin Gallagher.

The assets sold to Cooper include:

  • 50 per cent interest in the Casino-Henry gas project;
  • 50 per cent in the Sole gas field and the Orbost gas plant;
  • 10 per cent interest in the Minerva gas field and gas plant;
  • 100 per cent interest in the Patricia-Baleen gas field.

The total cash consideration is $82 million, comprised of $62 million at completion and a further milestone payment of $20 million upon the earlier of a final investment decision on the Sole gas project or the receipt of cash proceeds from any sell-down by Cooper of any of its interest in the sale assets.

“The acquisition of Santos’ Victorian gas assets is a logical and value-adding step to accelerate our gas strategy,” said Cooper’s Managing Director David Maxwell.

“The transaction will transform Cooper Energy by substantially increasing our production, further enhancing our gas reserves and resources for supply to south-east Australia and adding proven technical and project expertise.

“We are delighted at the opportunity to move to 100 per cent of Sole which we have identified as a very attractive growth opportunity for our company.”

 

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