In March, Magellan signed up to buy Santos's 40% stake in the field in NT/P48 in a move that could see the company produce methanol.

The field has a high content of carbon dioxide, which is a significant feed component for the production of methanol. The acquisition could give Magellan a development opportunity with regard to Asia's growing methanol markets.

The transaction is expected to be completed later this year following FIRB approval, regulatory and other approvals from the partners in Evans Shoal, Petronas Carigali (25%), Shell (25%) and Osaka Gas (10%).

Under the agreement, Magellan will pay Santos $100 million in cash over several stages with the final payment expected in the second half of this year.

Magellan will also pay $50 million on any final investment decision to develop Evans Shoal and another $50 million on first gas production from NT/P48.

The company plans to soon complete a definitive purchase and sale agreement for the sale of its stock to European firm Young Energy Prize as part of its financing process to purchase the interest.

The majority of the funds will be used for the purchase and the planning, testing, analysis and drilling of Evans Shoal, subject to joint venture approval.