Santos raises US$950 million from share sale

Australian LNG operator and stakeholder, Santos said on Monday it raised A$1.24 billion (US$949.9m) following the completion of a share purchase plan for retail shareholders.

Santos operates the Gladstone LNG project and holds stakes in the Darwin LNG project, and PNG LNG in Papua New Guinea.

The company on Monday said it raised A$201 million through the share purchase plan, which closed on January 31. The total amount raised under the institutional placement completed in December and the SPP was about A$1,241 million.

The funds are being used to speed up the Australian company’s debt reduction efforts.

To remind, Santos revealed a plan in December that involves selling off its non-core assets as it is aiming to cut net debt by US$1.5 billion within three years.

Santos will focus on five core, long-life natural gas assets including its GLNG project in Queensland, Papua New Guinea, Cooper Basin, Northern Australia and Western Australia Gas.

The remaining assets, including stakes in Indonesia and Vietnam, will be packaged and run separately as a standalone business.

LNG World News Staff