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Santos Broadens Offshore Exploration in N.Australia

February 19, 2019

The oil and gas producer in the Asia-Pacific region Santos has struck a joint venture (JV) agreement with fellow-listed Beach Energy (BEPTF) to partner over four exploration permits in the Bonaparte basin, offshore northern Australia.

The two companies will each hold a 50% JV interest in the four permits, with Santos acting as operator.

Santos’ position in the Bonaparte basin already includes an 11.5% interest in the Bayu-Undan gas-condensate field and the Darwin LNG plant, as well as a 25% interest in the Barossa field, which is currently in front end engineering and designand is the leading candidate to backfill Darwin LNG.

Santos Managing Director and Chief Executive Officer Mr Kevin Gallagher said: “This alignment of equity and operatorship will allow for a more strategic approach to the next phase of exploration in the region.”

“It also reinforces Santos’ significant exploration and existing substantial resource position in offshore Northern Australia and is a good example of industry collaboration aimed at doing things smarter.”

“We continue to chase material resource opportunities offshore Northern Australia to support our established infrastructure position at Darwin, with an eye to both export and domestic markets.”

“The next step for these permits is to evaluate new and existing seismic data to build inventory and define potential targets for drilling within the next few years. Permits NT/P82 and NT/P85, which are located immediately south of our Barossa project, will be a key focus for this work,” Mr Gallagher said.

Santos also holds 100% of WA-459-P and has an option to acquire a 40% operated interest of WA-488-P, where processing of a new 3D seismic survey over the large Beehive prospect is nearing completion.

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