Santos, Petronas Receive Approval for Gladstone LNG Partnership
Santos confirmed the Gladstone LNG (GLNG) transaction announced on May 29, 2008, whereby Santos selected Petronas as its 40% partner in the development, operation and marketing of the GLNG project, has become unconditional and will therefore complete shortly.
All regulatory conditions have been satisfied, including confirmation from the Foreign Investment Review Board that it has no objection to the proposed investment by Petronas.
On completion, Petronas will pay Santos US $2.008 billion for its 40% interest in the project. Santos will hold the remaining 60% of the project. A further payment of US $500 million will be made by Petronas upon reaching a Final Investment Decision for a second LNG train of 3mtpa capacity.
The GLNG project is planned for Gladstone, Queensland, Australia, and cost estimates for its development are A$7.7 billion. Construction is expected to commence in 2010.
- Santos Seen Luring More Bids After Rejecting $7.2 Billion Offer (Nov 16)
- Australia's Santos Steps Up Effort To Avert LNG Export Curb (Aug 30)
- Australia Plans LNG Export Limits to Help Ease Local Price Pain (Apr 27)
Company: PETRONAS more info
Operates 11 Offshore Rigs
- After Europe's Gas Market Disasters, LNG May Come to the Rescue (Dec 12)
- Petronas Unit Agrees Share Swap With Shell's Africa Operator (Dec 05)
- Malaysia's Petronas Asked To Exit Myanmar In Protest Of Rohingya Crisis (Nov 08)