ConocoPhillips closes nearly $1.4B asset deal

[Tom Kirkman + 8,860]

Looks like a win-win deal.  ConocoPhillips gets cash, and Santos gets O&G and LNG assets.

 

ConocoPhillips closes nearly $1.4B asset deal

Houston-based ConocoPhillips (NYSE: COP) has completed the sale of its Australia-West assets and operations to Australia-based oil and gas producer Santos.

The $1.39 billion purchase price didn't change, but the payments were restructured, according to a press release. As such, $200 million is due to ConocoPhillips when a final investment decision is made on the proposed Barossa development project.

After customary closing adjustments, ConocoPhillips has received net cash proceeds of $765 million, which are expected to be used for general corporate purposes.

The assets sold produced an average of approximately 46,000 barrels of oil equivalent per day during the first quarter of 2020, and proved reserves were approximately 17 million barrels of oil equivalent at year-end 2019, the release states. The deal includes the following operating interests in natural gas assets and strategic liquefied natural gas infrastructure located in northern Australia:

37.5 percent interest in the Barossa project and Caldita Field

56.9 percent interest in the Darwin LNG facility and Bayu-Undan Field

40 percent interest in the Poseidon Field

50 percent interest in the Athena Field

Santos already had an 11.5 percent stake in both the Darwin LNG infrastructure and the Bayu-Undan production as well as a 25 percent stake in the Barossa development.  ...