Australia’s Santos said it is in talks to sell an equity stake in its Gladstone liquefied natural gas (LNG) export project, part of a move to boost growth.
The company said it was in discussions with a number of Asian LNG buyers about potential sales from the project, including the potential for buyers to buy an equity stake.
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Australia’s largest oil and gas producer said it expects to make more announcements about gas sales before making a final investment decision on the project in mid-2010.
Santos has previously said it was looking to sell up to a 9% stake in Gladstone, which would leave it with 51%. Malaysia’s Petronas holds a 40% stake.
After having raised A$3bn (US$2.79bn) last year to strengthen its balance sheet, analysts said that sale of a stake in the project would reduce the chance that Santos would need to go back to equity markets, reports Reuters.
Gladstone is located near a port in the northeastern state of Queensland and has an LNG production capacity of 3.5 million tonnes per year.
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By GlobalData
