Santos, leading OIL and gas producer, is planning to sell off nearly one-third of its stake to the operators of Gladstone Liquefied Natural Gas project in a deal worth $1 billion.
With this, the Company will be able to enhance its equity values in the wake of insecurity aroused due to the super mining tax's negotiations.
The Australian told yesterday, that the Company has been negotiating with China's Sinopec for selling off the stake.
The project is owned by Santos and Malaysia's Petronas in a 60-40% ratio, respectively.
Santos Chief Executive, David Knox said that he had been planning to sell off 51% stake. But, now he is aiming to hold back the greater share in the agreement.
"If I can attract the right partner, I'm prepared to sell more. We will maintain a stake in this project that is larger than Petronas though", he said.
This implies that Santos will not be able to sell off more than 19.9% in the new deal and this will make its own the stake of 40.1 % in the project.
Ms. Brookman told that it will get challenging for Santos to enter the market with an issue of owning rights, as there are insecurities looming large around the RSPT.
