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.