Oil and gas producer Santos Ltd
(ASX:STO) has ramped up its Asian growth strategy with the purchase of more gas interests in Bangladesh.
The transaction will involve Santos acquiring an additional stake in Block 16, located in the Bay of Bengal, from Scottish oil and gas explorer Cairn Energy Plc.
Santos already has a 37.5 per cent interest in Block 16, and says it will become the operator of the field with a 75 per cent stake when the acquisition is complete, likely to be at the end of this year. Santos says Block 16 has substantial spare capacity to process and deliver additional gas into the rapidly growing domestic market.
While details of the transaction are confidential, Santos confirms its 2010 guidance remains unchanged.
Santos booked a profit of $198 million in the first six months of the year.
