PERTH (miningweekly.com) – Oil and gas major Santos has struck a strategic investment deal with shareholders ENN Group and Hony Capital, which jointly own a 15.1% interest in the company.
The strategic agreement is based on mutual cooperation and assistance to support the growth of Santos, and will see ENN and Hony use Santos as the primary investment vehicle for material investment in upstream gas reserve and liquefied natural gas (LNG) production in Australia and Papua New Guinea.
ENN and Hony will support future investment, with Santos using reasonable endeavours to include both parties in investment opportunities where it was in the best interest of shareholders as a whole.
Santos chairperson Peter Coates on Tuesday welcomed the strategic relationship, saying both shareholders had continued to support the company through challenging times.
“We look forward to a closer relationship with Hony and ENN and their support for the continued growth of Santos for the benefit of all shareholders.”
As part of the agreement, ENN VP Eugene Shi will join the Santos board as a nonexecutive director.
The agreement will be terminated if the two companies cease to jointly hold a 15% interest in Santos, or could be terminated by any of the parties 12 months after ENN ceased to have any nominee director to the Santos board.