APA · 10-Q · 2026Q3 · Full report

Australian Operations Divestiture Dispute

APA Corp · 2026-11-05 · Importance 20 · Surprise 24

APA and its subsidiaries sold Australian operations to Quadrant under an April 9, 2015 sale agreement, with closing on June 5, 2015; APA sued Quadrant in April 2017 for breach and seeks approximately AUD $[amount not provided]. Santos, which acquired Quadrant in 2018, amended its counterclaims in early 2025, retaining claims of approximately AUD $[amount not provided]. Santos also sued over potential Australian Taxation Office assessments, penalties, and interest for the 2014 and 2015 tax years, asserting that APA would be liable under the sale agreement if these amounts must be paid. The related lawsuits have been consolidated in the Supreme Court of Western Australia proceeding, and APA says it will prosecute its claim and defend the counterclaims.

Key facts

• Santos amended pending counterclaims in early 2025, abandoning a number of claims but maintaining counterclaims for an amount omitted in the text. source
• Santos’s new Australian tax-related lawsuit alleges potential assessments, penalties, and interest for 2014 and 2015 of an amount omitted in the text, and asserts APA would be liable under the Quadrant SPA if paid. source
• APA filed suit against Quadrant in April 2017 for breach of the Quadrant SPA; the claim amount is omitted in the text. source
• Quadrant filed a defense of equitable set-off and a counterclaim in December 2017; the amount is omitted in the text. source
• All lawsuits related to the Quadrant SPA have been consolidated into the same proceeding. source
• APA says it will vigorously prosecute its claim and defend against counterclaims in the consolidated Quadrant SPA litigation. source
• APA’s Australian operations were sold to Quadrant Energy Pty Ltd under an agreement dated April 9, 2015, and the sale closed June 5, 2015. source