Santos mulls bigger stake sale for GLNG
SANTOS could reportedly sell one-third of its stake in the Gladstone liquefied natural gas project to China’s Sinopec, reducing its need to raise funds for the project amid uncertainty over the resources super-profits tax.
The Australian said the company, which owns 60% of the project, was in talks with the Chinese oil giant over a stake sale and offtake deal.
It quoted CLSA analyst Di Brookman as saying a deal to sell off a larger stake to Sinopec could prove to be more attractive for Santos than going to the market with a rights issue when there was so much uncertainty around the RSPT.
“Not only are you getting more cash in, you are reducing your share of capital expenditure,” she added.
Santos chief executive David Knox had previously said he would consider selling down below the 51% level he had previously set if he could find the right partner.
Brookman added that CLSA believed Santos was as close as 24 hours away from announcing a buyer of gas for GLNG before the RSPT hit.
This aligns with Knox saying the proposed tax had stalled the sale process and a final investment decision for the project.
Monday, 14 June 2010
PetroleumNews.net
http://www.petroleumnews.net/StoryView.asp?StoryID=1136708
