Australia's Santos reports growth in 2P reserves

Australian gas producer Santos on February 13 reported an increase in its proved plus probable (2P) reserves, reaching 1,661mn barrels of oil equivalent (boe) at the close of 2023. This signifies an 8mn boe rise before production of 92mn boe. The 2P reserves replacement ratio (RRR) stands at 9%, and the three-year RRR demonstrates an impressive 354%.

International assets make up 42% of Santos' total 2P reserves. The 2P reserves mix is predominantly comprised of 84% gas and 16% liquids.

Simultaneously, the 2C contingent resources have increased to 3,325mn boe by the end of 2023, with a positive revision to the Tanumbirini field accounting for 108mn boe. Santos also highlighted its commitment to carbon capture and storage (CCS), maintaining 2P CO2 storage capacity of 9mn tonnes, while 2C contingent storage resource increased by 40mn tonnes to 131mn tonnes in the Cooper Basin.

“Today’s statement is the result of Santos’ disciplined annual reserves review and accounting processes, which include external audit of approximately 99% of total 2P reserves. It’s also pleasing adding another 40mn tonnes of 2C CO2 storage, further evidence of Santos building on its decarbonisation strategy,” Santos CEO Kevin Gallagher said.

Santos recently confirmed the termination of its merger plans with Woodside. Following an initial exchange of information, both companies concluded that sufficient combination benefits were not identified to support a merger that would be in the best interests of the shareholders.