News: Santos scores oil field stake from AWE

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Santos Limited (ASX:STO) has scored a 50 per cent stake in an undeveloped, offshore Indonesian oil field from AWE Limited (ASX:AWE). 

The oil and gas producer will pay up to $US188 million for the interest in the Northwest Natuna Production Sharing Contract and partner with AWE. 

The area contains a near term oil development project called the Ande Ande Lumut oil field which is understood to contain proved and probable reserves of about 100 million barrels of oil. 

Santos started exploring in Indonesia in 1997 and says the latest acquisition forms part of its strategy of focussed growth in its core Asian countries. 

Shares in Santos fell 0.9 per cent following the news while shares in AWE climbed 6.25 per cent yesterday. 

Santos delivered a 3 per cent increase in its first half net profit last week, with higher natural gas prices helping to lift the company’s result to $271 million.