Natural gas producer Santos has today announced the £1.6 billion acquisition of oil and gas firm Quadrant Energy.
According to Santos, the deal between the two Australian energy firms will provide opportunities for the natural gas firm to “leverage Quadrant’s offshore operating capability” across Santos’ Western Australia and Northern Australia portfolio.
Kevin Gallagher, Santos managing director and chief executive, said: “This acquisition delivers increased ownership and operatorship of a high quality portfolio of low cost, long-life conventional Western Australian natural gas assets which are well known to Santos, and importantly significantly strengthens Santos’ offshore operating capability.”
“It is materially value accretive for Santos shareholders and advances Santos’ aim to be Australia’s leading domestic natural gas supplier.
“The transaction lowers our proforma 2018 forecast free cash flow breakeven oil price by a further $4/bbl and Quadrant’s stable cash flows provide increased certainty during the upcoming period of major growth project delivery.”
“We look forward to welcoming Quadrant’s staff to the Santos family and integrating our Western Australian operations.”
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