Australia's Santos sells nearly 3% stake in PNG LNG project for $736 mln

The logo of Australian oil and gas exploration and production company Santos is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/file photo Acquire Licensing Rights

Under the deal, Kumul will buy the stake in PNG LNG, Australia's biggest resources project, for cash payment of $576 million and an additional $160 million of project finance debt, Santos said.

In a separate statement, Kumul said it has also been granted a call option to acquire a further 2.4% stake in the project for $524 million and a $145 million share of project debt, Santos said.

Shares of Santos, the country's No. 2 independent gas producer, rose 1.5% to A$7.79 in early trading.

In May, Santos had extended the exclusivity period for a $1.1 billion worth sale of its 5% stake in PNG LNG, considered one of the world's lowest cost LNG producers, till August-end.

Santos will retain a majority shareholding of 39.9%.