Santos plans to grow production to more than 100 million barrels of oil equivalent (mmboe) by 2025, almost doubling current production levels.
Speaking at the company’s Investor Day in Sydney this morning, Santos’ Managing Director and Chief Executive Officer Kevin Gallagher said the successful delivery of the Transform-Build-Grow strategy which was presented to the market in 2016 positioned the company for ‘disciplined growth’.
Mr Gallagher said that since the beginning of 2016, Santos’ strategy has delivered a diversified portfolio of five long-life natural gas assets generating free cash flow at less than $40 per barrel oil price, Australia’s lowest-cost onshore operations and a strong balance sheet to support growth, amongst a list of other achievements.
“Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle,” Mr Gallagher explained.
“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,” he stated, “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.”
The disciplined growth Mr Gallagher is referring to 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.
Earlier this morning, Santos shares were up 6¢, or 0.8 per cent, to $7.39.
More information on the announcement can be found here.