On 22 August 2018, Santos announced the acquisition of 100% of Quadrant Energy (Quadrant) for US$2.15 billion plus potential contingent payments related to the Bedout Basin. The full ASX and media announcement is available here.
This acquisition was subject to customary consents and regulatory approvals, and on 16 November 2018, Santos announced that the conditions for completion had been satisfied. The ASX and media release is available here.
Headquartered in Perth, Quadrant is a leading Australian oil and gas company, and the largest single provider to the Western Australian domestic gas market. Quadrant also accounts for a significant proportion of Australia’s oil production. With a strong focus on exploration and development activities, Quadrant is a critical player in underpinning Western Australia’s energy market and contributing to Australia’s national energy security.
Quadrant is a proven, low cost operator with a deeply experienced management team well known to Santos, and is the current operator of two Western Australian gas hubs (Varanus Island and Devil Creek) in partnership with Santos. Quadrant’s activities are focussed primarily in the Exmouth and Carnarvon Basins offshore northern Western Australia. Quadrant also operates the Ningaloo Vision FPSO and has an interest in both the Macedon Domestic Gas Plant and Pyrenees Venture FPSO operated by BHP. Like Santos, Quadrant has embedded a safety leadership culture across all levels of its organisation.
Acquiring Quadrant gives Santos increased ownership and operatorship of a high quality portfolio of low cost, long life Western Australian natural gas assets. Santos knows Quadrant and its assets well. Quadrant has excellent offshore conventional operations experience that Santos can leverage as we grow. Specifically, it strengthens Santos’ offshore operating expertise and capabilities to drive growth in our offshore Western Australia and northern Australian assets.
Hear from Santos CEO Kevin Gallagher on why acquiring Quadrant is an exciting opportunity for Santos.