Mitsui & Co. Ltd has stated that it has reached an agreement with Santos Ltd regarding the acquisition of the Santos’ 35% working interest in the Kipper gas and condensate field. The Sales and Purchase Agreement was signed on 6 November 2015 between Mitsui E&P Australia Pty Ltd and Santos Offshore Pty Ltd. The transaction is to be finalised after the satisfaction of customary conditions, which includes obtaining Australian governmental approvals and existing joint venture partners' waiver of their pre-emption rights.
The Kipper field is situated in the Gippsland basin, approximately 45 km off the coast of Victoria. Production of gas, condensate and LPG is expected to start in 2016, and the products are planned to be supplied to domestic market.
Following the start-up of three LNG projects in Queensland, Australian East coast gas demand is anticipated to grow substantially. Mitsui believes Australian East coast continuously require new investments in developing gas resources to meet such demand.
This acquisition is a significant step for Mitsui to expand its gas business in the region, and represents its aim to contribute to the reliable supply of energy to the Australian East coast as well as its continuous efforts in improving our reserves, production, and competitiveness. Diversification of energy upstream business in Australia, currently weighted towards LNG and crude oil, is also an important rationale of this investment. Mitsui has remarked that this acquisition of domestic gas asset, which is less vulnerable to global oil price, will lead to a more robust energy asset portfolio against commodity price volatility.
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/09112015/mitsui-acquires-interest-in-kipper-gas-and-condensate-field-1568/