The deal had been first announced last year but the explosion and subsequent repairs put paid to the sale temporarily. In 2003 Delhi’s spread of assets in the Cooper and Eromanga Basins produced an average of 27,000 barrel of oil per day.

Gradav is owned by family interests associated with Graeme Foley and Davod Libling. A press release said it was intended that Gradav remains a privately held company for approximately five years.

Terms of the deal were not disclosed but it is estimated to worth around $700 million. Libling was quoted as saying the due diligence alone cost around $4 million.

Esso said it was still trying to sell its 60% stake in the Wandoo oil project but had ceased actively marketing its interest in the Woollybutt field.

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