Santos has executed a conditional sale and purchase agreement to divest its 42.86% operated interest in the Mahalo Joint Venture in Queensland’s Bowen Basin to Comet Ridge Limited. The transaction includes A$40 million in upfront consideration and up to A$20 million in contingent payments linked to production milestones.

Santos has also recently completed the divestment to Eni Australia of its 42.71% interest in the Petrel fields and its 100% interest in the Tern fields in the Bonaparte Basin offshore Northern Australia. The company said the deal delivered cash and contingent consideration and reduced its future decommissioning exposure.

Managing Director and Chief Executive Officer Kevin Gallagher said the transactions demonstrate Santos’ capital discipline by monetising pre-development assets that are not near-term priorities in its capital allocation framework. He said the agreed terms with existing partners will allow development to progress, supporting future supply for the Australian domestic gas market.

Gallagher added that Santos’ near-term priorities are to deliver Barossa and Pikka and to progress the next phase of growth opportunities that leverage its existing operating footprint.