“Ever since Santos acquired Eastern Star Gas in 2011, we have openly pursued joint venture opportunities that would be beneficial to the development of the Project and in line with our plans. That was the case in 2011 and it continues to be the case,” a Santos spokesperson told PPO News.
“It’s worth remembering that our highest equity ownership outside of Narrabri is 67 per cent which we hold in the Cooper Basin.
“At 80 per cent it’s a high equity interest and we are looking at bringing that down, whether it is this year or over the coming years, to the order of 50 per cent to 60 per cent.”
The spokesperson added that the company is currently in active conversations with a number of parties about a potential sell down.
“We are in active conversations with a number of parties,” Santos Vice-President Eastern Australia James ¬Baulderstone said.
“There won’t be a project unless there are more investors coming in. The question is when, and how and where you go about it.”
At end of 2014, the project’s Tintsfield, Bibblewindi East and Bibblewindi West pilots were on line, while the Dewhurst South and North pilots were also commissioned and brought on line.
The NSW Government was initially due to release its decision on the Narrabri Project today, although Santos is still yet to submit its environmental impact statement.
The Narrabri Gas Project area covers around 98,000 hectares, with the proposed field operations to take up less than one per cent of the project area.
Those located in the Pilliga will be focused in an area specifically zoned by the government for natural gas development, while the project could produce 200 TJ of natural gas per day, equivalent to about half of NSW’s current gas demand, which will supply the NSW market via a new pipeline connection running south from Narrabri.
Quarterly production and sales up
Meanwhile, Santos has reported record production and sales figures for the company, with sales revenue for the last quarter at $A1.1 billion, following the ramp up of production from the PNG LNG Project as well as higher Cooper Basin production.
Production for the fourth quarter of the 2014 calendar year was at 15.1 MMboe, up 15 per cent on the previous corresponding quarter, bringing full year production up to 54.1 MMboe.
“Notwithstanding the fall in oil prices, Santos has delivered growth in full-year and quarterly production, and record sales revenue,” Santos Managing Director and Chief Executive Officer David Knox said.
“We look forward to further growth in 2015 with the start-up of GLNG in the second half of this year.”