Santos targets Asia LNG growth with Conoco deal

SYDNEY: Santos Ltd agreed to buy ConocoPhillips’ northern Australia business for US$1.4bil in a deal that will boost the Adelaide-based oil and gas producer’s position in the growing Asian liquefied natural gas market.

The transaction may allow Santos to become the country’s largest independent energy producer and capitalise on a push by Asian consumers, including China, to switch to cleaner burning natural gas away from coal. Conoco is selling its operating interests in the Darwin LNG processing plant and the Bayu-Undan, Barossa and Poseidon gas fields.