Santos completes sale of non-core Asian assets

September 07, 2018

SINGAPORE -- Santos announced in May 2018 the sale of its non-core Asian portfolio to Ophir Energy plc. Santos has advised that completion of the sale of the producing assets has occurred.

Sales of Santos’ interests in the Sampang PSC and Madura Offshore PSC in Indonesia, and Vietnam Block 12W PSC have completed. Completion for certain exploration assets in Bangladesh, Malaysia and Vietnam remains subject to customary consents and regulatory approvals expected in the coming months.

Santos has received cash proceeds of $144 million at completion, which represents the sale price of $221 million after standard adjustments including net free cash flows generated by the assets and received by Santos from the transaction effective date of Jan. 1, 2018 through to completion.

Strong free cash flows have reduced Santos’ net debt to approximately $2.2 billion as at Aug. 31, 2018. This amount will be further reduced by the Asia sale proceeds received in September and leaves Santos well placed to reach its $2 billion net debt target by October, more than a year ahead of schedule.

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