Santos (ASX:STO) has signed a binding letter of intent to buy at 14.3 per cent interest in Petroleum Retention Licence 3 which contains the P’nyang natural gas field in Papua New Guinea.
Santos will pay US$187 million in total, with approximately US$120 million payable following the execution of a fully-termed sale and purchase agreement, expected around the end of June 2019.
The remainder will be in contingent instalments subject to the award of a production development licence to replace PRL 3
They are also waiting on a final investment decision for the construction of an additional LNG train at the PNG LNG plant site for the liquefaction of gas from the P’nyang field.
Shares in Santos (ASX:STO) are trading 1.19 per cent higher at $7.21