Santos, Gladstone LNG Partners to Acquire Source Fields

Santos Ltd and its partners in the Gladstone LNG venture have entered into an agreement to purchase the Greater Meridian coal seam gas project located in Queensland. The acquisition, reported by Rigzone, involves a deal with Westside Corp and Mitsui & Co Ltd for roughly $310 million. The move is designed to transition the venture from a supply contract relationship to direct equity ownership of the upstream assets.

The purchasing group includes Peroliam Nasional Bhd, Korea Gas Corp, and TotalEnergies SE alongside Santos. Each participant will take a pro-rata share based on their existing interests in the Gladstone project. Once the transaction concludes, Santos will assume the role of operator. The deal is expected to close by the end of the year, pending the necessary regulatory approvals and customary closing conditions.

The Meridian field currently yields 47 terajoules per day, primarily feeding the Gladstone facility with a smaller portion designated for the domestic market. According to Santos chief executive Kevin Gallagher, the purchase aligns with strict capital allocation standards and is considered "value-accretive for Santos." The company also confirmed the sale of its minority operating interest in the Mahalo gas project to Comet Ridge.

By divesting the Mahalo stake, Santos has monetized an asset that was not identified as a high priority for its immediate development schedule. Meanwhile, the Greater Meridian acquisition includes significant proven and probable reserves. The partners intend to evaluate the Mungis coal seam gas area, located north of the current production zone, as a potential standalone investment for future development.