Senex Energy Limited reported Thursday that the company and GLNG have entered into a series of major agreements for the development of the Western Surat Gas Project in Queensland, Australia.
Commenting on the transaction, Senex Managing Director Ian Davies said the execution of the long-term agreements with GLNG’s participants, industry majors Santos, Total, PETRONAS and KOGAS, delivers a clear commercialization and financing pathway to enable Senex to proceed towards a Final Investment Decision (FID) for the Western Surat Gas Project. In addition, the bankable nature of the gas sales agreement (GSA) will enable project financing at FID.
“These transactions will deliver significant value to Senex through enabling an accelerated monetization of our material resource base. This is a natural relationship given our acreage sits adjacent to GLNG’s Roma fields. The provision of production and subsurface information from these operating fields together with close collaboration with GLNG will be hugely valuable to the efficient development of both projects,” he said.
Senex’s Western Surat Gas Project represents a near term opportunity to develop a major new revenue stream for Senex from a large 2P reserve base in a strategically located gas producing region.
“Even at current oil prices and exchange rates we expect the project to be economic, although there is further work to do to proceed to FID. This is a transformational deal for Senex and aligns with our strategy to capitalize on the strength of Australia’s East Coast gas market whilst maintaining our financial strength,” Davies said.
The following table summarizes the transactions, which are conditional on certain government approvals and GLNG participant approval. Completion of the transactions is expected by the end of 2015, pending government approvals.
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