The sale includes a 90% interest in the exploration permit EP 154(a) and (b), a 100% interest in the exploration permit EP153 and commensurate interests in several production permits, all pipeline infrastructure and the Heytesbury processing facility.
Consideration for the assets is $25.75 million, with an effective date of April 1, 2004. The sale is subject to the waiver of certain pre-emptive rights in respect of EP 154(a) and (b) and associated petroleum production licenses by the other joint venture participant, final completion and government approvals.
Santos has been producing natural gas from the onshore Otway Basin for Victorian industrial, commercial and residential customers since 1999.
The divestiture of these assets is in line with Santos’ strategy to sell non-core assets in order to focus on growth areas such as offshore Otway, offshore Western Australia, Indonesia, Timor Sea, the USA, the Middle East and North Africa.
Santos has in recent weeks announced several new ventures as part of its international growth strategy.
Last week, the Company unveiled details of its first North African exploration venture and last month announced an expansion of its Indonesian and USA exploration acreage and prospects and the agreement to acquire additional Indonesian oil and gas assets, following PT Medco’s bid for Novus Petroleum.
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