Santos, Australia's third-biggest oil and gas producer, has bought a stake in a natural gas field and exploration interests in Bangladesh as it widens a search for reserves to replace maturing fields in Australia.
The acquisition from Cairn Energy includes a 37.5 per cent interest in the producingSangu gas field, Adelaide-based Santos said yesterday.
Santos will pay US$50 million ($65 million) in cash plus as much as US$20 million depending on the results of an exploration programme.
In December Santos put up for sale its US business to concentrate exploration on Australia, Asia and the Middle East. In February it entered a venture in India, and has also invested in exploration in Kyrgyzstan and Vietnam in the past two years.
"This new-country entry is very attractive for Santos and provides exposure to material exploration upside in a proven prolific hydrocarbon province," said Santos managing director John Ellice-Flint.
Santos bought Cairn Energy Bangladesh, which holds the stake in Sangu, a 37.5 per cent interest in Block 16 and a 45 per cent interest in exploration Blocks 5 and 10. Cairn continues to hold interests in the licences and will remain as operator.
