Friday, December 17, 2010

Santos sells 15% of Gladstone LNG for A$665m

MELBOURNE:'' Santos Ltd says it has sold a 15% stake in Gladstone liquefied natural gas (GLNG) and flagged a A$500 million capital raising.

The gas giant has also signed an off-take agreement with state-run Korea Gas Corp (KOGAS) for 3.5 million tonnes a year, it told the Australian Stock Exchange on Friday, Dec 17.

Under the terms of the new agreements, Santos will sell an aggregate 15% of GLNG to French company Total and KOGAS.

The sale price is a little higher than a 15% stake in GLNG Santos offloaded to Total in September for A$650 million, which was below market expectations.

Santos said it intended to hold a A$500 million equity raising by issuing 39.8 million shares at a placement price of A$12.55 a share.

The fully underwritten institutional placement would be used to complete the funding of its 30% stake in GLNG, Santos said.

KOGAS has expressed its support for the GLNG project, which uses coal steam gas, buying a 7.5% stake from Petroliam Nasional Bhd and also a 7.5% stake from Santos.

Following the deals, Santos will remain the largest partner, with a 30% stake followed by Petronas with 27.5%, Total with 27.5% and KOGAS with 15%.

Santos had previously held 60% of GLNG.'' - Bernama

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