Australia's Carnarvon Energy seeks bids for company or asset sale, document shows

Carnarvon Energy

17/05/2024 05:38

By Lewis Jackson
       SYDNEY, May 17 (Reuters) - Australian oil and gas
explorer Carnarvon Energy  CVN.AX  is seeking a buyer for the
company or its assets, including its share in the Dorado oil
field co-owned with local producer Santos  STO.AX , a document
prepared by adviser JPMorgan showed.
    The company's strategic review, dubbed "Project Stargazer,"
will also consider mergers and other combinations, according to
the document being distributed to potential buyers seen by
Reuters.
    Carnarvon CEO Philip Huizenga said the company was exploring
options with JPMorgan to return value to shareholders even as it
continued to pursue the development of Dorado and push toward a
final investment decision by the end of the year. JPMorgan
declined to comment.
    The document singled out Carnarvon's 10% stake in the Dorado
oil field in shallow waters offshore from Western Australia,
which has 162 million barrels of gross contingent resources.
Santos is the operator and owns 80%, while Taiwanese state-owned
energy company CPC owns the remaining 10% of the field.
    Santos in 2021 had estimated a capital cost of $2 billion to
develop Dorado. Santos hired bankers that year to shop part of
its stake, but no sale occurred.
    Huizenga will pitch the potential Carnarvon deal on Monday
to an audience of 80 to 100 oil and gas executives on the
sidelines of an industry conference in Perth, according to a
person briefed on the talks but not authorised to speak
publicly.
    The company hopes to close a deal by the end of the year to
coincide with Santos' investment decision for Dorado, the person
added.
    Santos said on Wednesday it would sack 200 workers because
new project approvals were taking longer than expected and some
of its older assets were closing.
($1 = 1.5015 Australian dollars)

 (Reporting by Lewis Jackson; Editing by Jamie Freed)
 ((lewis.jackson@thomsonreuters.com; +61477406822; Reuters
Messaging: @lewjackk))