MELBOURNE, Australia -- Petroliam Nasional Bhd., based in Malaysia, has agreed to pay Santos Ltd., of Australia, US$2.51 billion for a 40% stake in its liquefied natural-gas development at Gladstone in the state of Queensland.
Santos has staked its future growth plans on the US$7.7 billion development, and analysts say the deal with the Malaysian company, known as Petronas, will boost confidence in the project with crucial technical skills provided by the Malaysian group.
Santos said Thursday that Petronas will make an initial cash investment of US$2.01 billion to be followed by a further payment of US$500 million when a final investment decision is made on a second LNG processing train at Gladstone.
Adelaide-based Santos has been looking for a major oil and gas player with LNG expertise to be its partner on the project, and Petronas fits the bill as the largest LNG producer in Asia and operator of the giant Bintulu LNG complex in Sarawak in Malaysia.
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