AUSTRALIA: Santos executes A$2 billion bilateral bank facility

(EnergyAsia, August 2 2010, Monday) --- Australian oil and gas producer Santos said it has executed a A$2 billion loan facility from nine banks to refinance its existing S$700 million of undrawn bilateral bank facilities maturing between 2011 and 2013. (US$1=A$1.2).

Santos executive vice president and chief financial officer Peter Wasow said the facility will provide increased liquidity during the scheduled construction period of its Gladstone (GLNG) and Papua New Guinea (PNG) LNG projects and delivers average maturities beyond the first production from the two projects.

The company said the facility was self-arranged and attracted total offers of A$2.9 billion from 13 banks. Offers from nine banks, which amounted to A$2 billion, were accepted with tenors ranging from four to seven years. The weighted average of the new facility is five years.

Mr Wasow said: “The strong support we received from existing and new lenders demonstrates the strength of the Santos business and financial profile. With this new facility, Santos will have A$6 billion of available funding capacity, including cash and committed corporate and project debt facilities. “

Santos said it has a long term rating of BBB+ from Standard and Poor’s.