Reporting by Rishav Chatterjee in Bengaluru; Editing by Varun H K and Rashmi Aich
Alaska
Santos to divest half of working interest in 148 leases at Alaska North Slope (Sept 19)
The logo of Australian oil and gas exploration and production company Santos is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File photo Acquire Licensing Rights
Sept 19 (Reuters) – (This Sept. 19 story has been corrected to say the leases are in the Langiappe area, not at the Pikka project, and to say the deal is with two U.S.-based, not Alaska-based, companies)
Australian oil and gas major Santos (STO.AX) said on Tuesday it would divest half of its working interest in 148 exploration leases in the Langiappe area on the Alaska North Slope in a farm-down agreement with two U.S.-based companies.
Santos had initially acquired the parcels of land on the eastern North Slope as part of its merger with Oil Search in 2021.
The company will also not bear any costs surrounding initial activities during the exploration phase at the project.
Santos has signed the deal with a unit of U.S. energy major APA Corp (APA.O) and with Lagniappe Alaska, LLC, a subsidiary of U.S. energy firm Armstrong Oil & Gas.
“This transaction demonstrates the continued level of interest in exploration and development projects in the region, a tier one jurisdiction with supportive stakeholders and prospective undeveloped acreage,” Santos managing director and CEO Kevin Gallagher said.
The farm-down is subject to customary government approvals, Santos added.
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