Santos announced that it has completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265 billion plus an increased contingent payment of US$200 million subject to a FID on Barossa which “can be made when market conditions permit.”
The Australian operator reminded that due to recent market volatility and the deferral of Barossa FID, Santos and ConocoPhillips agreed to decrease the previously announced US$1.39 billion upfront payment at completion to US$1.265 billion and increase the contingent payment on Barossa FID from US$75 million to US$200 million. “At completion, the net settlement amount was US$655 million, lower than the previously forecast amount of US$800 million.”
The acquisition delivers operatorship and control of Bayu-Undan gas basin and Darwin LNG plant to Santos as its share in these assets increases to 68.4% and also Santos’ interest in the Barossa project to backfill Darwin LNG increases to 62.5%, at completion.
The acquisition is fully-aligned with Santos’ strategy to build on existing infrastructure positions around its core assets, the company’s CEO Kevin Gallagher said. “Santos continues to build alignment between the Darwin LNG and Barossa joint ventures. Following completion of the previously announced sell-downs to SK E&S and JERA, Santos will hold a 43.4% interest in Darwin LNG and a 50% interest in Barossa.”
Santos has previously announced an agreement to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million and the signing of a letter of intent to sell a 12.5% interest in Barossa to JERA. “The sale of interests in Bayu-Undan and Darwin LNG to SK E&S, and in Barossa to JERA, are subject to third-party consents, regulatory approvals and an FID decision on Barossa.”
“We are continuing to advance discussions with other parties for the sale of further equity in the Barossa project in line with our previously stated target ownership level of around 40% to achieve increased partner alignment and prudent future allocation of growth capital. We are also in discussions with buyers for Barossa LNG volumes,” Gallagher added.

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Source(s) Global LNG Database, Santos, Map: ConocoPhillips