Santos extends exclusivity period for PNG LNG sell down
Australia's Santos has agreed to extend the exclusivity period for Kumul Petroleum's deal to buy a 5% stake in the PNG LNG project to April 2023, it said on December 23.
Santos had in September received a binding conditional offer from Kumul to acquire a 5% interest in PNG LNG for an asset value of $1.4bn, including a proportionate share of PNG LNG project finance debt of approximately $0.3bn. The exclusivity period was initially open until the end of December.
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To secure the offer, Kumul has paid an amount of $55mn to Santos which is held in escrow to be released for part payment if the deal goes through. Kumul is PNG's national oil and gas company and holds a 16.8% interest in the PNG LNG project.
“Kumul has advised Santos it has now extended the period in which the offer will remain open until 30 April 2023. Santos has agreed to deal exclusively with Kumul during this period regarding the sale of equity in PNG LNG,” the Australian company said.
The offer is conditional on Kumul obtaining the waivers of certain pre-emptive rights by each other PNG LNG project participant under the project operating agreement to allow the transaction to proceed, Santos said.
The PNG LNG joint venture comprises operator ExxonMobil (33.2%), Santos (42.5%), Kumul Petroleum (16.8%), JX Nippon Oil (4.7%) and the PNG landowner company MRDC (2.8%). Santos became the largest shareholder in PNG LNG with its takeover of Oil Search last year.