Santos Limited (ASX:STO)
has reached an accord with Nexus Energy Limited (ASX:NXS)
to amend the agreement relating to the Longtom gas production asset in the Gippsland Basin.
The Longtom asset is 100 per cent owned by Nexus.
Amendments made provide for a revised production profile and pricing structure, as well as a contractual arrangement for additional production from the Longtom area to be processed through a Santos production plant if required.
Nexus CEO Lucio Della Martina says the production profile has been re-aligned to meet future gas supply and demand, increasing the value of Longtom.
Mr Martina says a strategic review of the asset, including growth options, has been inititiated.
Santos generated a net profit of $518 million in the 2012 calendar year.