Hong Kong commodity trading company Noble Group Ltd. and US private equity firm EIG Global Energy Partners has offered bids for Australian energy company Santos Ltd. assets, said individuals acquainted with the matter.
The venture, Harbor Energy Ltd., is seeking to buy Santos assets that are situated in Australia and Asia, said one individual with learning of the procedure. Harbor Energy additionally has talked about other potential exchanges with Santos’ senior administration, the individual said.
Particular insights about the assets or their quality weren’t accessible. Two individuals acquainted with the sale said assets Santos is selling incorporate a bundle of Western Australian assets esteemed at about $1 billion and in addition Southeast Asian assets esteemed at $500 million to $750 million.
Adelaide-based Santos said in August that it would direct a strategic audit of its business, procuring Deutsche Bank AG and Lazard Ltd. as advisers. On Wednesday, Santos said it is considering “a scope of choices” including resource deals, organized fund exchanges, rebuilding and capital market exchanges.
The company’s esteem more than divided over the previous year as lower oil prices prompted expense cuts and lessened spending. In the first place half benefits fell 82% from the same period a year prior to 37 million Australian dollars (US$25.9 million at current trade rates), while net debt rose 17% to A$8.79 billion amid the six-month period.
Harbor Energy, which is driven by former Royal Dutch veteran Linda Cook, was framed a year ago to buy energy assets around the world. Noble set up joint venture as a feature of a bigger push to concentrate on its trader business while depending on partners, for example, Washington, D.C.- based EIG to handle production of physical wares.
Harbor Energy has looked for deals in non-U.S. markets since oil prices dropped. The firm collaborated with Mexican company Alfa SAB to acquire Canada’s Pacific Rubiales Energy Corp., Colombian oil company for $1.7 billion, yet the deal fell through in July due to inadequate shareholder support. Santos said it is considering “a scope of choices” including resource deals, organized fund exchanges, rebuilding and capital market exchanges.
The venture additionally has looked for deals in the Asia-Pacific locale. It offer on a stake in the Wheatstone condensed natural gas venture in Australia that Apache Corp. at last sold to Woodside Petroleum Ltd. Harbor Energy has been seeking after an interest in Southeast Asia since the mid year.