Santos today lifted its 2025 production target further to 120 million barrels of oil equivalent (mmboe), more than double 2018's output.
The new target, up from 100 mmboe set in 2018, represents a cumulative annual growth rate in production of over 8% to 2025.
Speaking at the company's Investor Day in
'Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle. Our 2019 forecast free cash flow breakeven oil price is now
'The recently announced acquisition of
'We are now positioned for disciplined growth leveraging existing infrastructure in all five of our core assets, which we believe will deliver 120 mmboe by 2025.'
This disciplined growth portfolio includes: Barossa LNG - targeting FID around the end of Q1 2020
Dorado liquids - targeting FEED-entry Q2 2020
PNG LNG expansion - targeting FEED-entry in 2020
GLNG ramp-up to 6.2 mtpa sales from 2020
'Natural gas is forecast to supply a quarter of the world's total energy demand by 2040. Through our Energy Solutions business, we are investing in projects to lower emissions and assessing the significant potential for carbon capture and storage in the
Completion of the acquisition is expected in the first quarter of 2020 and is subject to third-party consents and regulatory approvals.
Guidance
Santos has narrowed 2019 production guidance to 74-76 mmboe (previous 73-77 mmboe) and sales volumes guidance to 93-95 mmboe (previous 90-97 mmboe).
2019 upstream unit production cost guidance is lowered to
Completion of the acquisition is expected in the first quarter of 2020 and is subject to third-party consents and regulatory approvals.
Assumes completion of the
Major growth comprises Barossa in 2019 and Barossa, Dorado and PNG LNG train 3 in 2020. Assumes sell-down of Barossa to Santos' targeted 40-50% interest range in 2020.
Production in 2020 is expected to increase to between 79-87 mmboe, comprising 73-80 mmboe from the base business (excluding the
Completion of the
Capital expenditure in 2020 is expected to include approximately
Contact:
Tel: +61 8 8116 5167
Email: daniela.ritorto@santos.com
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