Oz Santos Aims to Double Production to 100mn boe by 2025

Australian oil and gas producer Santos plans to almost double its current production levels by 2025, taking it to more than 100 million barrels of oil equivalent, with the planned Quadrant Energy acquisition, an expansion at PNG LNG and growth at its Australian Cooper Basin, Gladstone LNG and Eastern Queensland operations providing the boost , the company said September 26.

Speaking at the company’s Investor Day in Sydney, Santos’ managing director and CEO Kevin Gallagher touted the company’s delivery of its “transform-build-grow” strategy presented to the market in 2016 as positioning the producer for the growth.

He pointed to Santos’ diversified portfolio of five long-life natural gas assets generating free cash flow at roughly $40 per barrel oil price, its position as Australia’s lowest-cost onshore operator, the reinstatement of shareholder dividends and the sale of its non-core assets as key achievements over the past couple of years.

“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,” he said.

The acquisition will give Santos a leading position in the highly prospective Western Australian Bedout Basin, including the recent significant oil discovery at Dorado, he said.