Santos has divested its non-core assets, including a 42.86% stake in the Mahalo Joint Venture to Comet Ridge for A$40 million, as part of a strategy to optimize its portfolio and focus on growth projects.

Target Information

Santos has announced the conditional sale of its 42.86% operated interest in the Mahalo Joint Venture, located in Queensland's Bowen Basin, to Comet Ridge Limited. This transaction is expected to yield A$40 million in upfront payments, along with up to A$20 million in contingent payments linked to future production milestones. Additionally, Santos has divested its 42.71% interest in the Petrel fields and 100% interest in the Tern fields, both situated in the Bonaparte Basin offshore Northern Australia, to Eni Australia. These divestments not only bring immediate cash inflow but also mitigate Santos' future decommissioning liabilities.

Kevin Gallagher, the Managing Director and Chief Executive Officer of Santos, has emphasized that these transactions exemplify the company's commitment to capital discipline. By monetizing pre-development assets that are not currently prioritized in their capital allocation framework, Santos aims to unlock further supply for the Australian domestic gas market through the development efforts of its partners.

Industry Overview

The Australian energy sector, particularly natural gas, has witnessed significant transformations in recent years, driven by both domestic and international demands. Queensland, with its extensive coal seam gas (CSG) reserves, has become a foc