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November 5, 2020

Australian firm Santos secures $750m syndicated bank loan facility

Australian liquefied natural gas (LNG) operator Santos has secured a $750m five-year bank loan that will mature in January 2026.

By Himaja Ganta

Australian liquefied natural gas (LNG) operator Santos has secured a $750m five-year bank loan that will mature in January 2026.

Funds secured through the facility that was ‘three times oversubscribed’ will be used to refinance its existing $750m loan taken out for the acquisition of ConocoPhillips’ northern Australian and Timor-Leste assets. Acquisition of these assets was completed in May.

Santos managing director and CEO Kevin Gallagher said: “The new debt facility is consistent with the company’s strategy of securing competitively priced long-term funding.

“This is an excellent result for Santos, showing strong support from bank lenders and demonstrating our balance sheet is set up to support our growth strategy. With this new facility in place, we now have no material debt maturities until 2024.

“We also have ample liquidity in place and our debt covenants have sufficient headroom at current oil prices for a number of years.”

In April, Santos signed a letter of intent (LoI) to divest a 12.5% stake in Barossa project, offshore Northern Australia, to Japanese firm JERA.

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Discovered in 2006, Barossa is an offshore gas and condensate field located around 300km north of Darwin, Northern Territory.

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