APA · 10-Q · 2026Q2 · Full report

Australian Operations Divestiture Dispute

APA Corp · 2026-08-06 · Importance 37 · Surprise 42 · In source text

APA is litigating with Santos Ltd., the successor to Quadrant Energy Pty Ltd., over the 2015 divestiture of APA’s Australian operations under the Quadrant Sale and Purchase Agreement. APA filed suit in April 2017 seeking approximately AUD $[amount redacted], while Santos maintains counterclaims of approximately AUD $[amount redacted] and asserts that APA may be responsible for Australian Taxation Office assessments, penalties, and interest for the 2014 and 2015 tax years of approximately AUD $[amount redacted]. The lawsuits have been consolidated in the Supreme Court of Western Australia, and APA intends to prosecute its claim and defend the counterclaims.

Key facts

• In early 2025, Santos amended the pending counterclaims to abandon a number of claims but maintained counterclaims and filed a new lawsuit in the Supreme Court of Western Australia asserting potential liability to the Australian Taxation Office related to the 2014 and 2015 tax years; all lawsuits related to the Quadrant SPA have been consolidated into the same proceeding. source
• In December 2017, Quadrant filed a defense of equitable set-off and a counterclaim; Quadrant was acquired by Santos, Ltd. in 2018, which assumed Quadrant’s place in the litigation. source
• The Company filed suit against Quadrant for breach of the Quadrant SPA in April 2017. source
• The Sale and Purchase Agreement (Quadrant SPA) for the divestiture of Australian operations was dated April 9, 2015 and the closing occurred on June 5, 2015. source

Impact estimates