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asia & oceania

Sunday, 20 July, 2008, 02:20 GMT | more prices >>

Santos sells MEO equity

By Upstream staff

Santos has sold its remaining equity in MEO Australia, the company that has for years been promoting an integrated methanol/ liquefied natural gas project in northern Australia.

MEO said Santos had sold 12.3 million shares, and the sale was facilitated by Tolhurst Limited.

"The shares were placed to Australian funds and private clients enthusiastic about the current drilling program in (Block) NT/P68," said MEO managing director Chris Hart.

Santos had at one stage owned 16.9% of MEO, which wanted to use feedstock gas from Santos' Evans Shoal field for its Tassie Shoal methanol/LNG projects.

MEO recently spudded its first-ever oil and gas well in a bid to secure its own feedstock gas. MEO said the rig West Atlas is currently drilling the 17½-inch hole at the Heron-2 well at a depth of 1670 metres.