Santos advances PNG LNG expansion

Company News

by Rachael Jones

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
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.