Australia's Santos to farm down exploration leases in Alaska

Australian energy company Santos on September 20 announced that it will farm down half of its working interest in 148 exploration leases on the Alaska North Slope to APA Alaska and Lagniappe Alaska. It did not disclose the value of the deal. 

The leases are located on the eastern North Slope with multiple prospects in the late Cretaceous Brookian and Schrader Bluff formations.

Under the terms of the farm-down agreement, APA Alaska and Lagniappe Alaska will undertake initial activities during the exploration phase without cost to Santos. The Australian company acquired the acreage as part of its merger with Oil Search in 2021. The farm-down is subject to customary government approvals.

CEO Kevin Gallagher said that Santos has been able to optimise its working interest in its Alaskan acreage in line with the strategy to focus on development of the Pikka project.

"I am pleased we've reached this agreement to farm down our exploration assets in Alaska," Gallagher said. "This transaction demonstrates the continued level of interest in exploration and development projects in the region, a tier one jurisdiction with supportive stakeholders and prospective undeveloped acreage."

"We look forward to working with our partners on the North Slope and continuing to build strong relationships together as we continue to develop and optimise our Alaskan business."