Santos (ASX:STO) is reportedly looking to sell its stake in the Alaskan oilfields it jointly owns, including the Pikka oil project, which is due to start producing in 2026. Reuters reported that Santos and its partner, Repsol, are discussing the sale of a minority stake worth around $US1 billion. This could represent between 20% and 25% of the areas.
The Pikka project, inherited by Santos in the takeover of Oil Search several years ago, is said to be worth $US4.5 billion alone, according to Reuters.
"The companies are working with an investment bank to jointly sell minority stakes in Pikka, alongside partial interests in the Horseshoe and Quokka fields located in the North Slope region of Alaska," Reuters reported. "The stakes are so-called non-op positions, meaning the owner gets a share of the proceeds from the sale of hydrocarbons without needing to undertake any drilling or be involved in operations. They are required to contribute to their share of costs."
"Potential buyer interest will likely be impacted by factors including legal and environmental risks," the sources said, cautioning that a deal is not guaranteed, Reuters added.
There are outstanding legal actions related to access to roads in an oilfield neighboring Pikka, which is owned by a unit of ConocoPhillips, the largest operator in the North Slope. Conoco had previously discussed with Oil Search about taking a stake in Pikka, but Oil Search rejected the approach. This was before Santos' $US6 billion takeover in 2021.
