Santos sells interest in Natuna block

Australian oil, gas firm Santos Limited said on Monday that it had executed on May 10, 2009 a conditional agreement to sell its 9 percent interest in Kakap PSC offshore Natuna to an undisclosed third party.

The total purchase price might be adjusted after completion, it said.

?However, it is likely that the sale price will be less than the book value of Kakap interest US$25 million,? it added.

Santos? 9 percent stake at Kakap was acquired in 2004.

Santos? share of Kakap production in 2008 was 323,000 barrels of oil equivalent, it said.

Gas production from Kakap block is supplied to Singapore through a pipeline.

Indonesian-based firm Star Energy is the block operator with 31.25 percent interest. Other participants are Premier Oil (18.75 percent), Medco Energi (18 percent), Sinagpore Petroleum Company (15 percent) and state oil, gas company Pertamina (10 percent). (alex)