Santos (ASX:STO) entered into a binding agreement to acquire a 30% stake in the Meridian CSG project in Queensland for around $85 million to $90 million as part of a sale to the GLNG joint venture, according to a Monday statement.
The joint venture consists of Santos, TotalEnergies, Petronas, and Kogas, Santos said. Each of the joint venture partners entered into binding sale and purchase agreements with Westside and Mitsui E&P Australia for the project. The gross purchase price is AU$430 million with an effective date of Jan. 1.
Santos said it will become the operator of the project upon completion of the transaction. Westside will provide transitional support for up to six months post-completion.
Completion is targeted for later in the year, and is conditional on regulatory approvals and other customary consents from counterparties.
Santos' shares fell nearly 3% in recent trading on Monday.