Santos
announces liquids marketing alliance with BP
Posted: 31 March 2004
Santos Limited announced today that it has entered into a non-binding
Heads of Agreement with BP Singapore Pte Limited to market Santos’
crude oil and natural gas liquids (naphtha and export LPG).
Santos will now work to negotiate and conclude a Marketing Services
Agreement with BP.
Marketing of crude oil and natural gas liquids has become more
global, where scale, market coverage and flexibility are vital.
The BP alliance allows Santos to tap into worldwide networks and
global markets through a marketing major like BP.
Santos had previously either directly marketed or had a management
role in the marketing of its crude oil and natural gas liquids.
The new marketing arrangements are in response to the significantly
higher volumes of crude oil that Santos will receive from the Mutineer-Exeter
project, due to come onstream in 2005, and the increasing globalisation
of the marketplace.
“This groundbreaking strategic alliance allows Santos to
access markets in an innovative way while delivering significant
productivity improvements and cost efficiencies,” said Mr
John Ellice-Flint, Santos’ Managing Director.
“This will be a great advantage for Santos when the Mutineer-Exeter
oil field comes on-line in mid 2005, increasing Santos’ total
oil and liquids production by over 40 per cent.”
“Santos is delighted to be working with such a well respected
and highly experienced company as BP. We hope this is the beginning
of a long and fruitful relationship,” said Mr Ellice-Flint.
BP has a major presence in significant trading markets such as
Australia, Singapore, Japan, China, UK, USA and the Middle East.
BP also has significant downstream assets in Asia, including two
refineries in Australia. Access to refineries is particularly important
when introducing new crudes, such as Mutineer-Exeter.
Santos’ Port Bonython operations will continue as normal,
processing all of Santos’ Cooper Basin liquids.
For more information see www.santos.com
Posted by Richard Price,
Editor Pipeline Magazine
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