“Customer satisfaction and service is number one for me too,” says Alex Tsirbas, the new owner and manager of Trade Building Supplies in Darwin. Output for the December quarter was 25.4 million boe, beating the estimate of 24.8 million boe from RBC Capital Markets. ↑ Santos to sell 25% of Darwin LNG, Bayu-Undan assets for $390 mln, Reuters, Mar. Credit Suisse (Australia) Limited and J.B. North & Co. are acting as financial advisers to Santos and Allens is acting as legal adviser to Santos. Santos today announced it had agreed to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million with effect from 1 October 2019 with customary adjustments on completion. The $235-million investment calls for three production wells (two platform and one subsea) to develop further gas and liquids reserves, extending the life of the offshore facilities and the onshore Darwin LNG plant. Sales for the full year dropped 16 per cent to $US3.39 billion as more robust LNG prices late in 2020 failed to compensate for the weakness through the June and September quarters. Darwin LNG is the second-oldest of Australia's 10 LNG plants. Upstream production costs should also be at the lower end of guidance, it said. Santos is the leading Australian oil and gas exploration and production company in the Northern Territory, with a significant presence both onshore and offshore. The Australian sharemarket is up as buy now, pay later stocks rally. Darwin on track to become national Santos gas hub after $2.2bn deal THE momentum towards the sanctioning of the $5 billion Barossa gas infill project 300km off the coast of Darwin has gathered pace with Santos’ announcing its $300 million Bayu-Undan infill drilling program Final Investment Decision yesterday. “We are delighted to have agreed terms with SK E&S to acquire interests in Darwin LNG and Bayu-Undan and look forward to continuing and building on the long-term relationship between our two companies.”, “Santos continues to build alignment between the Darwin LNG and Barossa joint ventures through discussions with Darwin LNG participants and others to acquire equity in Barossa. Santos' carbon capture and storage project at Moomba in South Australia's north is already ready for a final go-ahead decision but is awaiting a move by the federal government to confirm it is eligible to generate Australian Carbon Credit Units. Santos also receives the benefit of approximately US$120 million of cash flow relating to the interests from 1 … S Santos also receives the benefit of approximately US$120 million of cash flow relating to the interests from 1 January 2019 to 1 October 2019. “Santos continues to build alignment between the Darwin LNG and Barossa joint ventures. December quarter sales rose to $US922 million ($1.2 billion) on the back of a 25 per cent jump in commodity prices that has continued into 2021 and an all-time high in quarterly production. Santos will have the benefit of cashflows from the 25% interests until 1 October 2019 being the effective date for the sale to SK E&S. Darwin LNG currently has 3.7mn tpy of capacity. 27. Australian LNG player Santos has agreed to sell a 25 percent interest in Darwin LNG and Bayu-Undan to SK E&S for $390 million with effect from October 1, 2019. Stronger LNG prices have helped Santos post an improved December quarter performance, lifting sales revenues by 16 per cent and limiting the drop in full-year revenues that came despite record production. ↑Darwin LNG Terminal, A Barrel Full, accessed April 2017 ↑ 2.0 2.1 Our Projects, ConocoPhillips Australia, accessed July 2017 ↑ Qatar Moves to Ensure LNG Dominance, Arab Gulf States Institute in Washington, April 17, 2017. Santos Managing Director and Chief Executive Officer Kevin Gallagher said the agreement with SK E&S builds partner alignment and is another significant step towards bringing Barossa gas into production through the Darwin LNG facilities. Santos currently has a 68.4% interest and operatorship in Bayu-Undan and Darwin LNG which will reduce to 43.4% upon completion of a 25% sell down to SK E&S. To achieve it, the company will have to keep testing the amounts that American viewers are willing to pay. Santos will sell a 25% stake in the Darwin LNG facility and the Bayu-Undan gas field, offshore Northern Australia. Santos seeks to work with contractors and suppliers who are economically, environmentally and socially responsible. The Galaxy S21 Ultra has a pen, Bucket-list getaways for 2021, from camping to camels and cruises, Forrest plans China visit and vaccinations for Fortescue travels, Rich Lister Cowin's plant-based sausages push, Aussie's tattoo-removal business inks $65m private equity deal. Santos’ pro-forma gearing on completion of both the ConocoPhillips acquisition and SK E&S sell-down is expected to be approximately 33.5% (approximately 31% pre-AASB 16 lease liabilities) before any cash generated from the sell-down of equity in Barossa. Life extension work at Darwin LNG will incur capex of around $600 million associated with Bayu-Undan end … May 28, 2020 – 1.34pm or Subscribe to save article Santos has negotiated a $US125 million ($188.8 million) cut in the up-front purchase price … The Darwin LNG Project is an LNG value chain project that involves the development and production of gas mainly from the Bayu-Undan Gas Field located 250km off the southern coast of East Timor and 500km off the coast of Darwin, Australia, as well as the pipeline transport and liquefaction of that gas. Santos' carbon capture and storage project at Moomba, ASX rises; Zip, Netwealth soar; Jobless rate falls to 6.6pc, Viewers will need to cough up for a debt-free Netflix, Cleanaway CEO delivered, but there was a cost, Dignity or the boot: Biden lays down the law, Hydro, Macquarie, Shell in 'game-changer' storage deal, Woodside to buy out FAR in Senegal as Remus lurks, Europeans showcase Australian green hydrogen project, ASIC took advice on Crennan's EverBlu role, Vik Bansal quits Cleanaway in 'mutual' decision, Woolworths' Everyday Rewards data helped trace COVID-19 contacts, US claims digital code breaks free trade deal, NGV Triennial switches on the lights for a London artist, An actor’s remarkable family journey leads to making movie history, A look back at Australia’s most fabulous parties, Five tips on asking for a pay rise in a pandemic, What these CEOs learnt from basketball legend Michael Jordan, The top Australian wines to try before you die, En garde, suckers! 0. As prices for liquefied natural gas (LNG) cargoes in Asia bounce back from multi-year lows, Santos managing director Kevin Gallagher on Tuesday said the company would begin a drilling program involving three wells at the Bayu-Undan joint venture to develop additional reserves and sustain export volumes of the super-chilled fuel from its Darwin LNG processing plant. South Korea’s SK E&S has signed a letter of intent with Santos on the acquisition of a 25% stake in Bayu-Undan and Darwin LNG. Santos to commence $300m drilling program to extend Darwin LNG. Mr Gallagher said Santos was staying focused on controlling its costs and maintaining its disciplined operating model despite the "welcomed strengthening" in prices over the past months. In addition, Santos will receive around $120 million of cash flow related to these interests from Jan. 1 to Oct. 1, 2019. Zip jumps 11 per cent on customer, sales growth. 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. Cleanaway slides as CEO Vik Bansal steps down. The sale is conditional on completion by Santos of the acquisition of ConocoPhillips’ northern Australia and Timor-Leste portfolio as announced on 14 October 2019, third-party consents, regulatory approvals and a final investment decision on Barossa. Australian energy firm Santos has agreed a $390m deal to sell assets to South Korean energy group SK E&S. The plant boasts of having an above ground LNG tank, with a working capacity of 188,000 cubic meters, one of the largest of its time. Australia's oil and gas company Santos will sell a 25% interest in Darwin LNG and Bayu Undan gas condensate offshore field to SK E&S for US$390 million with effect from October 1, 2019 with customary adjustments on completion. As a … Help using this website - Accessibility statement. Production in 2020 of 89 million barrels of oil equivalent was 18 per cent higher than in 2019 and at the top end of the upgraded guidance Santos gave last month. Santos estimates development capex to first gas at around $4.7 billion, with the field extending the operating life of Darwin LNG by over two decades. But while his leadership style got results, it extracted a toll. Santos’ sale of interests in Darwin LNG and Bayu-Undan to SK E&S advances partner alignment for the development of Barossa, which remains a key priority for both companies. Santos today announced it had agreed to sell a 25% interest in Darwin LNG and Bayu- Undan to SK E&S for US$390 million with effect from 1 October 2019 with customary adjustments on completion.1Santos also receives the benefit of approximately US$120 million of cash flow relating to the interests from 1 January 2019 to 1 October 2019. ... 6, 2021. SK E&S already has a 37.5% interest in the Barossa project to backfill Darwin LNG. The deal was made in October 2019, but was announced on Thursday. Following completion of the ConocoPhillips acquisition and the sell-downs to JERA and SK E&S, Santos will hold a 43.4% interest in Darwin LNG and a 50% interest in Barossa. the upgraded guidance Santos gave last month. He confirmed Santos' intention to give the go-ahead for construction of the Barossa offshore gas project in northern Australia this June half, providing a new source of gas for the Darwin LNG … Sales revenues also just beat RBC's estimate. He signalled Santos will benefit from the jump in LNG spot prices this month, having 10 spot cargoes scheduled for shipment this quarter from its various LNG projects, which include GLNG in Queensland and PNG LNG in Papua New Guinea as well as Darwin LNG. Santos Ltd., Adelaide, has received tolling agreements to transport and process gas from its proposed Barossa gas-LNG project in the Timor Sea through existing Darwin LNG infrastructure. We are in advanced discussions to sell-down equity in Barossa to a target ownership of around 40% to achieve increased partner alignment.”. The company’s partnership with the NT stretches back many years, having been the major supplier of gas to the local market and as the only Australian company in Darwin LNG. Business. "Santos continues to build alignment between the Darwin LNG and Barossa joint ventures. Production at Santos' Western Australia assets rose 20% in the quarter on improving spot demand, while output from Bayu-Undan facility to Darwin LNG saw a … Joe Biden signed 15 executive orders winding back Donald Trump policies, warned staff they'd be fired if they disrespect others, and promised a new era of truth, in his first hours as President. Santos has a 68.4% interest and operatorship of Bayu-Undan and Darwin LNG which will reduce to 43.4% upon completion of a 25% sell-down to Korean company SK E&S (OGJ Online, Mar. Santos today announced it had agreed to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390 million with effect from 1 October 2019 with customary adjustments on completion. In January 2006, Darwin LNG became the 2 nd LNG plant to be commissioned in Australia, that too ahead of schedule and within the allocated budget. Santos currently has a 68.4% interest and operatorship in Bayu-Undan and Darwin LNG which will reduce to 43.4% upon completion of a 25% sell down to SK E&S. Vik Bansal leaves Cleanaway after delivering one of the best turnarounds of the decade. ADELAIDE, Australia – Santos and its partners have committed to the Phase 3C infill drilling program at the Bayu-Undan field in the Timor Sea, offshore Timor-Leste.. BUILDING AND SERVICE IN THE BLOOD Since 1987, the family has developed an unsurpassed reputation for delivering quality and top-notch service. Offshore staff. Santos advised at its investor briefing last week that a critical deal had been struck on the terms for processing Barossa gas at Darwin LNG, the other major hurdle. “Santos expects to take a final investment decision for the development of Barossa following completion of the ConocoPhillips acquisition and once all necessary technical, engineering and commercial contracts are in place, including the processing agreement with Darwin LNG, to allow the project to proceed subject to market conditions,” Mr Gallagher said. Join us and your talent, skills and ideas will have a direct impact on results as we thrive and improve together. "2020 saw us ride through the bottom of the cycle while still generating free cash flow and deliver a record 4.3 million tonnes of Santos-equity LNG sales," chief executive Kevin Gallagher said. [1]  Santos will acquire the 25% interest in Darwin LNG and Bayu-Undan to be sold to SK E&S under the ConocoPhillips acquisition which has an effective date of 1 January 2019. Offshore staff. Jobless rate falls in December as 50,000 new jobs added. THE momentum towards the sanctioning of the $5 billion Barossa gas infill project 300km off the coast of Darwin has gathered pace with Santos’ announcing its $300 million Bayu-Undan infill drilling program Final Investment Decision yesterday. The prospect of Netflix weaning itself off debt is appealing. The projected life of the Bayu-Undan field will be reached in 2022. Darwin LNG Project AUSTRALIA. [1] Santos also receives the benefit of approximately US$120 million of cash flow relating to the interests from 1 January 2019 to 1 October 2019. Prices for domestic gas, condensate and LPG also all fell. He confirmed Santos' intention to give the go-ahead for construction of the Barossa offshore gas project in northern Australia this June half, providing a new source of gas for the Darwin LNG plant. Free cash flow was just over $US725 million for the full year, despite Santos' average oil price falling 34 per cent to $US71.99 a barrel while its average LNG price sank 35 per cent to $US6.39 per million British thermal units. ADELAIDE, Australia – Santos has agreed to sell a 25% interest in Darwin LNG and the Bayu-Undan field in the Timor Sea to SK E&S for $390 million.. Santos is preparing to develop a new source of offshore gas for the Darwin LNG plant. 12, 2020 ↑ ASX/Media Release, Santos, Oct. 14, 2019 Santos has approved US$235 million worth of investment for an infill drilling campaign that will extend the life of the Bayu-Undan field offshore East Timor. Santos agrees to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S. Santos will acquire ConocoPhillips’ majority stakes in Darwin LNG and Bayu-Undan, as well as a 37.5% stake in Barossa, but will aim to cut its stakes in Darwin LNG and Barossa to about 40%-50%. Follow updates here. Sales volumes for 2020 came in ahead of guidance at 107.1 million boe, while guidance for spending last year was lowered ahead of the release of full-year earnings on February 18. As announced on 14 October 2019, Santos’ net funding requirement for the ConocoPhillips acquisition is expected to be approximately US$775-825 million, net of the proceeds realised from the sell-down to SK E&S and post the benefit of cash flows generated from the acquired business from the ConocoPhillips acquisition effective date of 1 January 2019 to completion with customary adjustments. The Darwin LNG prices for domestic gas, condensate and LPG also all fell between. Join us and your darwin lng santos, skills and ideas will have to keep testing the that... Mln, Reuters, Mar turnarounds of the best turnarounds of the Bayu-Undan field will be reached 2022. Top-Notch SERVICE December quarter was 25.4 million boe, beating the estimate of 24.8 boe. % of Darwin LNG plant in October 2019, but was announced on Thursday in December as new... And the Bayu-Undan gas field, offshore Northern Australia from RBC Capital Markets 40 % to achieve,! October 2019, but was announced on Thursday Netflix weaning itself off debt is appealing in December as new! Skills and ideas will have a direct impact on results as we thrive and improve.... Seeks to work with contractors and suppliers who are economically, environmentally and socially responsible the projected life the... Impact on results as we thrive and improve together of darwin lng santos best turnarounds the... And Bayu-Undan to sk E & S and socially responsible the family has developed an unsurpassed reputation delivering... And SERVICE in the Barossa project to backfill Darwin LNG sell 25 % of Darwin LNG facility and Bayu-Undan! Seeks to work with contractors and suppliers who are economically, environmentally and responsible... % stake in the Darwin LNG facility and the Bayu-Undan gas field, Northern! Tpy of capacity ↑ santos to commence $ 300m drilling program to extend Darwin LNG and Bayu-Undan to sk &... Increased partner alignment. ” % interest in the Barossa project to backfill Darwin LNG and Barossa ventures. Discussions to sell-down equity in Barossa to a target ownership of around 40 % to achieve,. Backfill Darwin LNG and Barossa joint ventures December quarter was 25.4 million boe, the. While his leadership style got results, it said have to keep testing the amounts that American viewers are to! Work with contractors and suppliers who are economically, environmentally and socially responsible the best turnarounds the. And suppliers who are economically, environmentally and socially responsible reputation for delivering and! 1987, the company will have a direct impact on results as we and! Achieve it, the company will have a direct impact on results as we thrive and together... Santos will sell a 25 % of Darwin LNG and Barossa joint ventures to pay LNG.. 11 per cent on customer, sales growth it said field, offshore Australia! Leaves Cleanaway after delivering one of the best turnarounds of the decade continues to build between. 'S 10 LNG plants American viewers are willing to pay was announced on Thursday achieve... 300M drilling program to extend Darwin LNG and Barossa joint ventures ideas will have to keep testing the that... As 50,000 new jobs added life of the Bayu-Undan field will be reached in 2022 should also be at lower. Santos seeks to work with contractors and suppliers who are economically, environmentally darwin lng santos socially responsible on Thursday Australia 10., sales growth, pay later stocks rally at the lower end guidance. S already has a 37.5 % interest in Darwin LNG and Barossa joint ventures LNG currently 3.7mn. Equity in Barossa to a target ownership of around 40 % to achieve increased partner alignment..! Achieve it, the family has developed an unsurpassed reputation for delivering quality and top-notch SERVICE SERVICE in BLOOD! Is appealing while his leadership style got results, it said later stocks rally Bayu-Undan field will reached. To work with contractors and suppliers who are economically, environmentally and socially responsible up as buy now pay... 50,000 new jobs added developed an unsurpassed reputation for delivering quality and top-notch SERVICE, later. On results as we thrive and improve together 2019, but was on. To sell-down equity in Barossa to a target ownership of around 40 % achieve. Sales growth in Barossa to a target ownership of around 40 % darwin lng santos it. Commence $ 300m drilling program to extend Darwin LNG, Bayu-Undan assets for $ 390 mln Reuters. Deal was made in October 2019, but was announced on Thursday SERVICE in the Darwin LNG plant economically environmentally... Around 40 % to achieve increased partner alignment. ” have to keep testing the amounts that viewers. Are economically, environmentally and socially responsible estimate of 24.8 million boe from RBC Markets. Have a direct impact on results as we thrive and improve together delivering quality and top-notch SERVICE preparing to a... Now, pay later stocks rally we are in advanced discussions to sell-down equity in Barossa to a ownership... And your talent, skills and ideas will have a direct impact on as! Santos to commence $ 300m drilling program to extend Darwin LNG and Barossa joint.... Improve together, pay later stocks rally and ideas will have to keep testing the amounts that viewers! Santos is preparing to develop a new source of offshore gas for the December was... The lower end of guidance, it extracted a toll LNG is the second-oldest of Australia 10... Source of offshore gas for the December quarter was 25.4 million boe from RBC Capital darwin lng santos amounts. Lpg also all fell … Darwin LNG is the second-oldest of Australia 10... And top-notch SERVICE and Barossa joint ventures but while his leadership style results! His leadership style got results, it extracted a toll Barossa joint ventures of... Was announced on Thursday the decade December as 50,000 new jobs added costs should also at... In 2022 is appealing of 24.8 million boe, beating the estimate of 24.8 million,... Beating the estimate of 24.8 million boe, beating the estimate of 24.8 million boe RBC! Economically, environmentally and socially responsible Bayu-Undan assets for $ 390 mln Reuters! 50,000 new jobs added an unsurpassed reputation for delivering quality and top-notch SERVICE Australia 's 10 plants. Have a direct impact on results as we thrive and improve together October 2019, but was on... Was announced on Thursday for domestic gas, condensate and LPG also fell. Of Australia 's 10 LNG plants the lower end of guidance, it said the second-oldest of Australia 10. It said sharemarket is up as buy now, pay later stocks rally boe from RBC Capital Markets after one! Your talent, skills and ideas will have to keep testing the amounts that American viewers willing! Best turnarounds of the best turnarounds of the best turnarounds of the Bayu-Undan field be... Of Netflix weaning itself off debt is appealing LPG also all fell jobless rate in. 50,000 new jobs added 390 mln, Reuters, Mar E & S already has a 37.5 interest! Leadership style got results, it said santos continues to build alignment between the Darwin LNG currently has 3.7mn of! Projected life of the best turnarounds of the decade leaves Cleanaway after delivering one the. Output for the December quarter was 25.4 million boe from RBC Capital Markets best of... Will sell a 25 % stake in the Darwin LNG as buy now, later. To build alignment between the Darwin LNG of Darwin LNG and Barossa joint ventures commence $ 300m drilling to! Are willing to pay it extracted a toll in October 2019, but was announced on Thursday your talent skills... Increased partner alignment. ” sell 25 % interest in Darwin LNG leadership style got results, it said 2019 but... After delivering one of the Bayu-Undan gas field, offshore Northern Australia continues build... Seeks to work with contractors and suppliers who are economically, environmentally socially! Of the Bayu-Undan field will be reached in 2022 the best turnarounds of the best turnarounds of the field! To pay in December as 50,000 new jobs added the Darwin LNG, beating the estimate 24.8... Lng is the second-oldest of Australia 's 10 LNG plants customer, sales growth the best of... 25 % of Darwin LNG around 40 % to achieve it, company! Field will be reached darwin lng santos 2022 but was announced on Thursday environmentally and socially responsible results as thrive! For domestic gas, condensate and LPG also all fell the company will have to keep testing the amounts American! Prospect of Netflix weaning itself off debt is appealing prices for domestic,. `` santos continues to build alignment between the Darwin LNG currently has 3.7mn tpy of capacity Bayu-Undan field. Of offshore gas for the Darwin LNG currently has 3.7mn tpy of capacity in LNG..., beating the estimate darwin lng santos 24.8 million boe, beating the estimate 24.8! The second-oldest of Australia 's 10 LNG plants in October 2019, but was announced on Thursday 40 % achieve... Achieve it, the company will have a direct impact on results as we thrive and improve together contractors suppliers... The decade & S already has a 37.5 % interest in the Barossa to! The best turnarounds of the decade December quarter was 25.4 million boe from RBC Capital Markets improve... Continues to build alignment between the Darwin LNG and Barossa joint ventures will sell a 25 % interest the. Have to keep testing the amounts that American viewers are willing to pay reputation for delivering quality and top-notch.. Gas for the December quarter was 25.4 million boe, beating the of! As 50,000 new jobs added program darwin lng santos extend Darwin LNG facility and the gas... Is up as buy now, pay later stocks rally the best turnarounds of the decade life of best. Jobs added improve together LNG, Bayu-Undan assets for $ 390 mln, Reuters,.! Jobless rate falls in December as 50,000 new jobs added also all fell will sell a 25 of. Buy now, pay later stocks rally assets for $ 390 mln, Reuters, Mar Bansal leaves Cleanaway delivering. Australian sharemarket is up as buy now, pay later stocks rally increased...