Santos today outlined its plans to grow production to more than 100 MMboe by 2025, almost doubling current levels of production.
Speaking at the company’s Investor Day in Sydney, Santos Managing Director and CEO Kevin Gallagher said the successful delivery of the transform-build-grow strategy presented to the market in 2016 had now positioned the company for disciplined growth.
Gallagher said since the beginning of 2016, Santos’ strategy has delivered:
- A diversified portfolio of five long-life natural gas assets generating free cash flow at ~$40/bbl oil price.Australia’s lowest-cost onshore operations.
- A strong balance sheet to support growth.
- The reinstatement of shareholder dividends.
- The sale of non-core assets.
“Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle,” Gallagher said.
“Subject to regulatory approvals, the recently announced acquisition of Quadrant Energy will further reduce our breakeven oil price and deliver operatorship of a high quality portfolio of low-cost, long-life conventional Western Australian natural gas assets.
“It would also give us a leading position in the highly prospective Bedout basin, including the recent significant oil discovery at Dorado.
“We are now positioned for disciplined growth leveraging existing infrastructure in all five of our assets in the portfolio and are targeting production of more than 100 MMboe by 2025.”
This disciplined growth portfolio includes:
- Barossa backfill to Darwin LNG – targeting FID by the end of 2019.
- PNG LNG expansion and proposed farm-in to P’nyang.
- Cooper basin, GLNG, and Eastern Queensland growth.
- Quadrant acquisition, including Dorado oil.