Santos to Work with ENN, Hony in Oz/PNG

Australian Santos and its existing shareholders ENN Group and Hony Capital will work to invest in the Australian and Papua New Guinea upstream and LNG industry, Santos said June 27.

“It is the intention of ENN and Hony that Santos will be the primary investment vehicle for material investment by them in upstream gas reserves and LNG production in Australia and PNG. ENN and Hony will support future investment by Santos and Santos will use reasonable endeavours to include ENN and Hony in investment opportunities where it is in the best interests of Santos shareholders as a whole,” Santos said.

ENN and Hony are associated shareholders of Santos with an aggregate relevant interest of 15.1% of Santos shares. The strategic relationship will become effective and remain in effect for so long as ENN and Hony have a relevant interest in 15% or more of Santos shares.

“Santos welcomes the formalisation of a strategic relationship with Hony and ENN,” Santos chairman Peter Coates said.

Wang Yusuo, chairman and founder of ENN said: "ENN and Hony strongly support the new growth strategy of Santos under the leadership of CEO Kevin Gallagher and the Santos Board. The strategic relationship will effectively link up the upstream E&P competence of Santos with China's fast growing downstream market of natural gas, and explore many opportunities for Santos to realise its full potential as a leading producer of gas and LNG.”

As part of the strategic relationship, Eugene Shi, vice president ENN Ecological Holdings, will join the Santos Board as a non-executive director.

Shardul Sharma