ConocoPhillips announced it has entered into an agreement to sell its Australia-West subsidiaries to Santos for $1.39 billion. The company will also receive a payment of $75 million upon final investment decision (FID) of the Barossa development project. The subsidiaries hold the company’s 37.5% interest in the Barossa project and Caldita Field, its 56.9% interest in the Darwin LNG facility and Bayu-Undan field, its 40% interest in the Poseidon field, and its 50% interest in the Athena field. ConocoPhillips will retain its 37.5% interest in the Australia Pacific LNG project and operatorship of that project’s LNG facility.
Production associated with the assets being sold was approximately 50,000 boe/day for 1H 2019, and proved reserves were approximately 39 million boe at the end of 2018. The effective date for the transaction will be Jan 1, 2019.
The sale was originally expected to be completed 1Q 2020, but the purchase price was reduced to $1.265 billion and a $200 million payment contingent upon FID of Barossa when the deal closed in May 2020.