Santos may offload stakes: PM

By DALE LUMA
PRIME Minister James Marape has indicated to PNG LNG beneficiaries that Santos Ltd is willing to offfload certain stakes from its equity in the project at a fair market price.
He said this was subject to negotiations and announcements would be made once commercial discussions were completed.
Santos has taken over all of Oil Search’s interests in the country with the acquisition recently completed.
Marape said he had written to Santos on the equity arrangements.
“Santos has had good positive discussions with the Government of PNG that they are willing to offload certain stake in what is now their stake in the PNG LNG project,” he assured the five beneficiary provinces.
“Once the commercial discussions are completed with Santos and Kumul, we’ll be in a place to announce.”
Santos recently announced that it was targeting US$2 billion (about K6.84 billion) to US$3 billion (about K10.2 billion) in asset sale proceeds as a means of strengthening its balance sheet this year.
The Australian operator recorded free cash flow of US$1.5 billion (about K5.13 billion) and underlying profit of US$946 million (about K3.23 billion) last year. Net profit after tax was US$658 million (about K2.25 billion) which included losses on commodity hedging and costs associated with acquisitions and one-off tax adjustments.
The improved results were a result of much higher oil and LNG prices compared to the corresponding period.
Santos said its low-cost operating model delivered a free cash flow breakeven of US$21 (K71.9) per barrel in 2021. The board has resolved to pay a final dividend of US$8.5 (K29.10) per share, 70 per cent higher than the previous final dividend.
Managing director and chief executive officer Kevin Gallagher said Santos delivered record production, free cash flow and underlying earnings last year, as strong base business performance positioned the company to benefit from higher commodity prices.