Santos Seeking Indian Oil & Gas Joint Venture

Australia's third- biggest oil and gas producer, Santos Inc. is seeking partners to take stakes in two deepwater exploration permits off India's east coast. The Adelaide-based company owns 100 percent of the two licenses and in need to reduce risks as it proceeds towards drilling.

Santos during the bid to win the permit has committed itself as the operator for the permits to carry out seismic surveys and drilling of exploration wells. Santos anticipated of spending $70 million over eight years on exploration in India covering about 16,500 square kilometers establishing its root in India.

PETRONAS Buys Stakes in Santos Australia LNG

Malaysia's State Oil Company, Petronas is buying a 40 percent stake in Australian energy firm Santos Ltd's Gladstone for $2.51 billion. Santos Gladstone is in the liquefied natural gas project in Australia.

Petronas' investment in the project will help to fasten the usage of coal seam gas as a feedstock as Petronas is seen as the ideal partner to help develop Santos' coal seam gas to LNG strategy.

Santos was quoting that Petronas will inject capital investment of $2.01 billion followed by remaining for the second LNG train at the Gladstone, Queensland. The key strategic alliance is due to marketing power of Petronas, the third-largest LNG producer in the world. Santos shares jumped 10.12 percent to a record high of A$20.90 by 0325 GMT, a proud achievement for both Santos and Petronas.

Other oil and gas companies such as Exxon Mobil are also taking lead in LNG project in Papua New Guinea with Santos for a race amid rising prices and a forecast surge in global demand.