Santos Limited to Acquire a 14.3% interest in PRL 3

Australian energy pioneer, Santos Limited (ASX: STO) has 13.5% interest in the PNG LNG Project which is having the capacity to produce over 8 million tonnes of Liquefied natural gas (LNG) per annum. Today the company has announced that it is going to acquire 14.3% interest in Petroleum Retention Licence 3 (PRL 3) which is an important step towards the expansion of PNG LNG plant.

In an announcement made on 16 May 2019, the company announced that PRL 3 Joint Venture participants have signed a binding letter of intent (LOI) with Santos Limited by which Santos will purchase a 14.32% equity interest in PRL 3. With regards to this acquisition, Santos limited has agreed to pay a total of US$187 million.

Today, Santos Limited’s shares were up by 2.104% during the intraday trade.

The signing of this LOI is an important step in creating alignment between the PNG LNG Project and the PRL 3 Joint Venture, ahead of FEED entry for the planned three train expansion at the PNG LNG plant site.

(P’nyang) Equity Interests (Source: Company Reports)

With one of the largest exploration and production acreages in Australia, Santos limited is determined to provide sustainable returns to shareholders by supplying affordable, reliable and cleaner energy to improve the lives of people in Australia and Asia.

Santos along with the other PNG LNG parties and the Papua LNG Joint Venture are continuing discussions to build alignment for the proposed construction of three additional LNG trains at the PNG LNG site, with two trains to process gas from the Papua LNG project and one train for the proposed PNG LNG expansion.

During the first quarter of FY19, PNG LNG performed strongly and LNG plant operated at an annualised rate of 8.8 mtpa achieving record daily rates equivalent to 9.2 mtpa annualised. Further, the Sales volumes were lower than the prior quarter due to the timing of shipments.

On 2 April, the company had announced that the PNG LNG Project co-venturers have entered into a mid-term LNG sale and purchase agreement with Unipec Singapore regarding the supply of around 0.45 million tonnes of liquefied natural gas per annum (mtpa) over a four-year period.

Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $7.280, up by 2.104% during the day’s trade with a market capitalisation of ~$14.85 billion as on 16 May 2019. The counter opened the day at $7.200 and reached the day’s high of $7.290 and touched a day’s low of $7.160 with a daily volume of ~4,937,157. The stock has provided a year till date return of 35.04% & also posted returns of 14%, 6.26% & 0.14% over the past six months, three & one-month period respectively. It had a 52-week high price of $7.490 and touched 52 weeks low of $5.145, with an average volume of ~4,734,307.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report