State-run Korea Gas Corporation (KOGAS) is buying a 15 per cent stake in Santos Ltd’s
(ASX:STO) Gladstone LNG joint-venture project.
Korea Gas is also set to agree on a long-term supply deal, coming one step closer to a final investment decision on the $15 billion project.
In a complex transaction, Korea Gas will buy 7.5 per cent from the project’s operator, Santos, and another 7.5 per cent from Malaysia’s Petronas.
In addition, Santos will also sell an additional 7.5 per cent stake in Gladstone to France’s Total, bringing Santos' stake to 30 per cent.
Santos is the largest shareholder in the project, with 27.5 per cent to be held by both Petronas and Total.
For the year ended 30 June 2010, Santos booked a net profit of $198 million.
