Santos buys more Surat land in deal with Senex

SANTOS GLNG will buy a 77 square kilometre block of land near Roma in the Surat Basin for $42 million to secure gas supplies under a 20-year agreement with Brisbane-based Senex Energy Limited.

The land, known as the Maisey Block, is expected to supply GLNG with up to 50 terrajoules of coal seam gas a day, which will be processed at the GLNG plant on Curtis Island.

The land is adjacent of GLNG-owned gas fields.

In return for the purchase of the land, GLNG will provide technical and operating data to Senex.

Senex has yet to reach final investment decision stage in its project, but a statement from the company this morning said the deal would provide a clear pathway towards its FID.

"These transactions will deliver significant value to Senex through enabling an accelerated monetisation of our material resource base," said Senex managing director Ian Davies

"This is a natural relationship given our acreage sits adjacent to GLNG's Roma fields. The provision of production and subsurface information from these operating fields together with close collaboration with GLNG will be hugely valuable to the efficient development of both projects," he said.