SK Group Inks Australian Gas Deal

SK E&S (SK), an affiliate of South Korean conglomerate SK Group, ConocoPhillips and Santos have entered into an agreement to progress the development of the Caldita and Barossa gas discoveries located in the Timor Sea.

According to the terms of agreement SK will earn a 37.5% interest in Caldita and Barossa through a proportionate reduction by Santos and ConocoPhillips.  ConocoPhillips will remain operator of both permits.

Prior to the agreement, Santos held a 40% interest in both discoveries, with operator ConocoPhillips holding the remaining 60%.

The three well appraisal program will be funded to the tune of $260 million by SK. Following completion of the appraisal program, SK will have the option to increase its interest to 49.5% in exchange for a further payment of $60 million to Santos and ConocoPhillips.