(Updates with details and background in paragraphs 2-6)
Sept 19 (Reuters) - Australia's Santos on Tuesday said it will divest half of its working interest in 148 exploration leases on the Alaska North Slope at its Pikka project, in a farm-down agreement with two Alaska-based companies.
The Aussie oil and gas company had initially acquired the parcels of land on the eastern North Slope as part of its merger with Oil Search in 2021.
Santos' working interest in the Pikka project would effectively be reduced to 25% post the execution of the farm-down.
Santos has signed the deal with a unit of U.S. energy major APA Corp and with Lagniappe Alaska, LLC, a subsidiary of U.S. energy firm Armstrong Oil & Gas.
"This transaction demonstrates the continued level of interest in exploration and development projects in the region, a tier one jurisdiction with supportive stakeholders and prospective undeveloped acreage," said Santos managing director and CEO Kevin Gallagher.
The farm-down is subject to customary government approvals, Santos added. (Reporting by Rishav Chatterjee in Bengaluru; Editing by Varun H K)
