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Santos has executed a binding sale settlement to ship Kumul Petroleum Holdings Restricted a 2.6% taking part curiosity in PNG LNG for a complete buy consideration comprising money of US$576 million and the belief of roughly US$160 million of mission finance debt (the sale settlement).
Completion of the sale settlement isn’t topic to finance and is conditional solely on the approval of the PNG competitors regulator on or earlier than 31 December 2023. Kumul has paid US$80 million into escrow with Santos as half cost of the acquisition consideration underneath the sale settlement. Kumul has undertaken to make additional pre-payments of the acquisition consideration into escrow all through the interval up till completion.
As well as, Santos has agreed to grant Kumul a name choice to amass an additional 2.4% taking part curiosity in PNG LNG for a money buy value of US$524 million (plus a proportionate share of mission finance debt) (the decision choice).
The decision choice have to be exercised on or earlier than 30 June 2024 and is topic to completion of the sale settlement having occurred and the satisfaction of customary circumstances, together with vital regulatory approvals and third-party consents.
On 27 September 2022, Santos introduced the receipt of a binding conditional provide from Kumul to amass a 5% curiosity in PNG LNG. This provide and the exclusivity preparations with Kumul have now expired. The monetary phrases and efficient date (31 December 2022) of the transactions introduced are according to the phrases of that earlier provide inclusive of the switch of mission finance debt.
Santos Managing Director and CEO, Kevin Gallagher, mentioned: “I’m happy we’ve reached a binding settlement with Kumul on the sale of as much as 5% of PNG LNG. This restructured transaction is a realistic answer that gives a transparent pathway to completion and builds our strategic alignment with Kumul and our lengthy friendship with PNG, the place Santos has been a dedicated company citizen for over 40 years.”
“PNG LNG is a low-cost and low emissions depth asset that contributes robust money flows to the mission individuals and financial and social advantages to the nation.”
Papau New Guinea Prime Minister, James Marape, concluded: “This transaction will improve Kumul’s curiosity in PNG LNG and helps the PNG authorities goals for the folks of PNG to have a larger fairness curiosity within the improvement of their pure assets.”
Learn the article on-line at: https://www.lngindustry.com/liquid-natural-gas/07092023/santos-agrees-initial-sale-of-26-of-png-lng-to-kumul/
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