ACAPMA News
Shell, Santos discuss Gladstone deal: report
Published 3:22 AM, 9 Jul 2010 Last update 9:09 AM, 9 Jul 2010
Oil major Royal Dutch Shell has entered into bidding discussions for a stake in Santos Ltd's Gladstone Liquefied Natural Gas interest, also eyed by Sinopec and Korea Gas, according to media reports.
Santos is currently in talks with Shell, despite continuing negotiations with Sinopec, a source told The Australian newspaper.
Santos has declined to comment.
An agreement would give Shell an interest between nine and 20 per cent, worth up to $1 billion, in the Gladstone project, The Australian reports.
The Australian Financial Review reports the deal is worth closer to $2 billion, for a 30 to 35 per cent stake.
Under that agreement, Sinopec and Korea Gas would ink long-term LNG purchasing deals worth tens of billions of dollars, according to the newspaper.
The agreement could see a merger of the project with Arrow Energy Ltd's coal seam gas-to-LNG project, which has been purchased by Shell and PetroChina in a joint venture.
The deal could see the number of projects planned for the Gladstone area reduced from four to three.
Extracted in full from: http://www.businessspectator.com.au/bs.nsf/Article/Shell-Santos-discuss-Gladstone-sale-pd20100709-76N3J?opendocument&src=rss
