Santos offloads Australian non-core gas assets to Eni and Comet Ridge

December 17, 2025, by Melisa Cavcic

Australian energy player Santos has embarked on a portfolio optimization quest by divesting its stake in offshore fields to Eni Australia, a subsidiary of the Italian giant Eni, and striking a deal to dispose of its operated interest in another asset in Australia.

Santos has executed a conditional sale and purchase agreement (SPA) to shed its 42.86% operated interest in the Mahalo joint venture, located in Queensland’s Bowen Basin, to Comet Ridge. This move will deliver A$40 million ($26.46 million) in upfront consideration and up to A$20 million (around $13.23 million) in contingent payments linked to production milestones.

The Australian giant has also completed the divestment of its 42.71% interest in the Petrel fields and 100% in the Tern fields to Eni Australia in the Bonaparte Basin off the coast of Northern Australia. The sale has brought cash and contingent consideration and reduced the firm’s future decommissioning exposure.

Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer, commented: “I am pleased to agree commercial terms with our existing partners that will allow them to progress the development of these assets, unlocking future supply for the Australian domestic gas market.

“These two transactions reflect our commitment to capital discipline to deliver sustainable and competitive shareholder returns. Santos’ near-term priorities are to deliver Barossa and Pikka, and to progress the next phase of growth opportunities that leverage our existing operating footprint.”

Santos is seeking approval to drill up to seven exploration and/or appraisal wells in the Commonwealth waters within the Bedout Basin. This hydrocarbon search is anticipated to unlock more hydrocarbons offshore Australia.