Santos and its joint venture partner Beach Energy have taken a final investment decision to proceed with the Moomba Central Optimisation (MCO) project in the Cooper Basin, South Australia.
The project will replace seven ageing gas-driven compressor stations with one electric-driven compressor station that will debottleneck upstream infrastructure and unlock future production growth from the Cooper Basin Central Fields.
Santos will invest AU$357 million in the project, which the company has fully budgeted in its capital expenditure and will set it within its AU$45 billion to AU$50 billion cash flow breakeven target.
The project is expected to take over three years, with completion expected in the first half of fiscal 2029.
The optimisation project is targeting capex and opex savings of more than AU$600 million over the life of the central fields by moving to more efficient and modern infrastructure.
Santos CEO Kevin Gallagher said the MCO project was consistent with the company’s strategy for disciplined growth around its existing infrastructure.
“The Cooper Basin has been a cornerstone of Australia’s gas supply for more than 60 years. The MCO project will unlock significant value by modernising our infrastructure and extending the productive life of this world-class resource,” Gallagher said.
“This project demonstrates our commitment to operational excellence and capital efficiency.
“By replacing ageing infrastructure with modern, electric-driven technology, we will reduce operating costs, improve reliability and lower emissions.
“Importantly, the project is estimated to reduce Santos Scope 1 emissions by over 40,000 tonnes of CO₂ equivalent per year, supporting our Scope 1 emissions reduction targets.”
The project will also support Beach’s 35 per cent equity emissions intensity reduction target, since the modernised infrastructure and power generation enables future renewable integration into the network.
Beach CEO Brett Woods said: “The MCO project will unlock significant value from the Cooper Basin asset, driven by efficiencies gained from the rationalisation of existing satellite facilities into a new centralised compression facility, and supporting future production growth from the Central Fields.
“This project aligns with Beach’s strategic objectives to pursue sustainable cost reductions and a low-cost operating model and demonstrates our commitment to continued investment in our core assets to support national energy security.”