Gas and oil producer Santos has flagged further asset sales this year to fund its liquefied natural gas (LNG) project plans.
Santos chief executive David Knox reiterated during a media teleconference today the company’s intention to sell down 9 per cent of its multi-billion dollar Gladstone LNG project in Queensland.
Mr Knox said Santos was in talks with two parties about a potential equity sale.
Santos, which is also participating in the ExxonMobil-led LNG joint venture in Papua New Guinea, currently has $2 billion cash in bank and total funding capability of $5 billion but still needs to boost its coffers, he said.
‘‘There are assets that we can rationalise,’’ Mr Knox said. ‘‘We need a final capital cost for Gladstone.
‘‘As we come up to FID (final investment decision), we will do a full funding plan.’’
Santos’s calendar 2009 result announced today included a $180 million net profit from asset sales after divesting 60 per cent of the Petrel, Tern and Frigate fields in the Timor Sea to France’s GDF SUEZ.
AAP
