PETRONAS-BACKED SANTOS TO SELL GAS TO GLNG

MELBOURNE, Oct 25 (Bernama) -- Santos Ltd says it has signed an agreement to
supply gas to its newly-approved Gladstone Liquefied Natural Gas (GLNG) plant in
Queensland.

GLNG is a joint venture with Santos and two of the world's largest LNG
companies, Malaysia's Petronas and Total of France.

Santos said Monday the deal involved supplying 750 petajoules of gas over 15
years from 2014, mainly from Santos's uncontracted Cooper Basin P2 reserves.

The price will be linked to crude oil prices, Santos said in a statement.

Santos' chief executive David Knox said the agreement delivered "significant
value" to Santos' Cooper Basin interests "by opening an export channel for
Cooper gas and accelerating its monetisation".

"The oil-linked pricing will underwrite future investment in the Cooper Basin
and unlock the potential of the Basin's remaining substantial resources," Knox
said.

"For some time, Santos and our partners in the Cooper Basin have highlighted the
enormous potential of infill drilling and unconventional gas if a sufficiently
attractive price could be established. This deal achieves that," he said.

Santos has a 66.6 per cent interest in the South Australian Cooper Basin joint venture. The other participants are Beach Energy (20.21 per cent) and Origin Energy (13.19 per cent).

Beach Energy said Monday it was engaged in talks with Santos about
participation in the deal.

The Australian government gave environmental approval to the GLNG project last Friday.