Santos eyes $27 billion Papua LNG funding mix with heavy debt
Australian oil giant Santos is targeting a roughly US$27 billion capital spend for its integrated Papua LNG–PNG LNG expansion hub in Papua New Guinea, with up to three-fifths to be covered by debt finance.
PNG LNG sell-down
May 1 (LNGJ) - Santos, the Australian shareholder in Papua New Guinea LNG and its expansion project, has again extended its sell-down exclusivity period with Kumul Petroleum of PNG until the end of August 2023. The binding conditional offer from Santos to Kumul is to acquire a 5 percent interest in PNG LNG for asset value of US$1.4 billion, including a proportionate share of LNG project finance debt of around US$300 million.
“Kumul has advised Santos it has now extended the period in which the offer will remain open until 31 August 2023. Santos has agreed to deal exclusively with Kumul during this period regarding the sale of equity in PNG LNG,” said Santos. “Kumul has agreed it will work closely with Santos during this extension period in order to assist it in arranging the finalisation of its acquisition financing with third parties. There is also strong support from both the government and the joint venture partners for the transaction proceeding,” added Adelaide-based Santos.
Australian LNG operator Santos posts doubling of LNG sales revenues while advancing expansions and backfill
Australian LNG operator Santos delivered a doubling of annual LNG sales revenues while advancing expansion plans in Australia and Papua New Guinea as prices rose with increasing demand even amid an Asia-Pacific economic slowdown.
Japanese company Chiyoda awarded LNG-for-power project in Papua New Guinea by Kumul Petroleum
Chiyoda Corp., one of the leading global LNG engineering companies, has been awarded the design development and engineering contract for a new Floating, Storage and Regasification and Power Generation (FSRP) project in LNG exporting nation Papua New Guinea where a plant expansion is still pending.
