Santos Completes Stake Sale in Kipper Gas Field Offshore Victoria to Mitsui

Santos on Thursday announced it has completed sale of its 35 percent non-operated interest in the Kipper gas field to Mitsui E&P Australia Pty Ltd (Mitsui) for A$520 million in cash.

The deal was announced and signed in November 2015.

The Kipper field is located in the Gippsland basin, approximately 45 kilometers off the coast of Victoria, Australia. Production of gas, condensate and LPG is expected to start in 2016, and the products are planned to be supplied to domestic market.

According to Mitsui, Australian East coast gas demand is expected to grow substantially due to start-up of three LNG projects in Queensland. Mitsui believes Australian East coast continuously require new investments in developing gas resources to meet such demand.

This acquisition is a significant step for Mitsui to also expand its gas business in the region, and represents its aim to contribute to the reliable supply of energy to the Australian East coast as well as its continuous efforts in improving our reserves, production, and competitiveness.