Santos Agrees to Sell 5% Stake In PNG LNG To State-Owned Kumul - Report
09.26.2022 By Ella Keskin - NEWS

September 26, 2022 [Reuters] –  Santos Ltd (STO.AX) has agreed to sell a 5% stake in PNG LNG to Papua New Guinea’s state-owned Kumul Petroleum for $1.1 billion in a deal to be announced on Tuesday, the Australian Financial Review reported late on Monday.


Santos declined to confirm the report. Kumul Petroleum could not be reached outside office hours.

Santos said in August it expected to reap proceeds from the sale of a 5% stake in PNG LNG “in line with market consensus valuation”, which was around $1.5 billion.

There had been some speculation that Santos was under pressure to give away 5% of PNG LNG to Kumul Petroleum, but Santos Chief Executive Kevin Gallagher told Reuters in August: “Whoever is going to get 5% off us will pay the market value … or we wouldn’t sell it.”

Santos became the largest shareholder in PNG LNG, Papua New Guinea’s largest resource project, with its takeover of Oil Search last year.

With the selldown of 5%, Santos will own 37.5%, still ahead of Exxon Mobil Corp (XOM.N), the operator, with 33.2%. Kumul Petroleum will own 21.8%. The remainder is owned by a unit of Japan’s JX Holdings Inc and PNG state-owned Mineral Resources Development Co.

The PNG LNG stake was one of three assets Australia’s no.2 independent gas producer put up for sale this year aiming to raise up to $3 billion.

However it pulled the sale of a stake in the Pikka oil project in Alaska after failing to find a buyer at the right price.

Plans to sell a stake in the Dorado oil project in Australia are on hold as Santos indefinitely delayed final approval for the development.

Reporting by Sonali Paul


Pro Trial: Access 11,340 Tank Terminal and Production Facilities

11,340 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

WTI Crude Oil Forecast: Continues to Threaten Support
12.01.2022 - NEWS
December 1, 2022 [DailyForex] – We are on the precipice of either forming a massive double ... Read More
Oil Updates — Crude Prices Up; Chevron Awaits Venezuelan Oil Cargoes
12.01.2022 - NEWS
December 1, 2022 [Arab News] – Oil rebounded on Tuesday after falling to more than 11-month... Read More
WTI, Brent Prices Slip
12.01.2022 - NEWS
December 1, 2022 [Financial Tribune] – Oil prices slid on Wednesday as Covid-19 cases in Ch... Read More
A Volatile Year for Oil Markets
12.01.2022 - NEWS
December 1, 2022 [TheStreet] – One month ago, with inventories of diesel fuel and gasoline ... Read More