Australia's Santos Secures $750M Loan

Thursday, November 5, 2020

Australian oil and gas company Santos has executed documentation to enter into a new US$750 million syndicated bank loan, to refinance existing debt facility established for the acquisition of ConocoPhillips’ northern Australian and Timor-Leste assets.

According to Santos, the new facility was about three times oversubscribed, "receiving strong support from a mix of existing and new relationship banks."

Proceeds from the new facility will be used to refinance the existing US$750 million debt facility established for the acquisition of ConocoPhillips’ northern Australian and Timor-Leste assets, which was completed in May 2020.

Santos acquired ConocoPhillips’ northern Australian business with operating interests in Darwin LNG, Bayu-Undan, Barossa, and Poseidon $1.265 billion, with a $200 million contingent payment included for the Barossa field, subject to FID.

Santos said Wednesday that the new five and a quarter-year facility would mature in January 2026, extending Santos’ weighted average term to maturity of its drawn debt facilities to almost five years.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the new debt facility is consistent with the company’s strategy of securing competitively priced long-term funding.

“This is an excellent result for Santos, showing strong support from bank lenders and demonstrating our balance sheet is set up to support our growth strategy.”

“With this new facility in place, we now have no material debt maturities until 2024."

“We also have ample liquidity in place and our debt covenants have sufficient headroom at current oil prices for a number of years,” Gallagher said.


Categories: Finance Energy Industry News Activity Australia/NZ

Related Stories

SBM Offshore, SLB to Optimize FPSO Performance Using AI

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Seatrium Secures ABS Backing for Deepwater FPSO Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Santos and QatarEnergy Agree Mid-Term LNG Supply

Current News

Shell’s Brazil-Bound FPSO Starts Taking Shape

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com