Santos eyes assets selloff

Outgoing Santos CEO David Knox

Outgoing Santos CEO David Knox

Santos will rake in some $168 million upon the sale of its stake in the Stag oilfield in the Carnavon Basin in Western Australia.

The Australian newspaper today reported that the company has placed its two-thirds share in the field on the market, with offers due in October.

The remaining share of the Stag oil field is owned by Quadrant Energy.

Chinese company, Fosun has reportedly expressed interest in the Stag field asset.

News of the proposed sale comes after Santos earlier this month announced an 82 per cent plunge in profits for the first half of the year and the company’s long-time CEO David Knox stepped down from his post.

Santos Chairman, Peter Coates said the firm will be “turning over every stone” in an attempt to provide value to shareholders after the disappointing results announcement and scale back its $9.4 billion debt.

Citing unnamed sources, the newspaper alleged Santos could sell off its entire Western Australian gas portfolio and could sell its Northern Territory assets also.

“A deal of this magnitude could fetch close to $2.5bn, based on the valuations of UBS analysts,” The Australian reported.

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