RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2020-12-01 12:55:00

AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE

AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE

SANTOS - 1 December 2020 - Santos upgrades 2020 guidance

Santos today upgraded its 2020 production guidance to 87-89 million barrels of oil equivalent (mmboe) and lowered its production cost guidance to $8.00-8.50/boe. 

The upgrade in production guidance, from 83-88 mmboe, is due to strong operating performance across the base business and represents 15-18 per cent production growth for the year and more than 50 per cent growth since 2015.

Santos is also on track to deliver the production cost reductions announced in March in response to the COVID pandemic, which sees 2020 guidance lowered to $8.00-8.50/boe.

Capital expenditure is still expected to be approximately $900 million, consistent with the 38% reduction for the year announced in March.

Integration of the ConocoPhillips acquisition completed in May 2020 is proceeding well, with guidance on acquisition synergies upgraded to $90-105 million per annum.

Speaking at the company's Investor Day in Sydney, Santos Managing Director and Chief Executive Officer Kevin Gallagher said the consistent and successful execution of Santos' Transform-Build-Grow strategy has the company positioned for disciplined growth and sustainable shareholder returns.

"Our strategy has been to establish a disciplined low-cost operating model that delivers strong free cash flows through the oil price cycle. Our 2020 forecast free cash flow breakeven oil price is less than US$25 per barrel before hedging and around US$20 per barrel after hedging," Mr Gallagher said.

"Our base business is strong with production levels expected to remain relatively steady for the next decade and providing significant free cash flow. This cash flow combined with a strong balance sheet and control over the timing of our major projects, means we are well positioned for disciplined growth."

Santos also announced today another significant step towards a final investment decision on the Barossa project with Darwin LNG approving tolling agreements to transport and process Barossa gas through DLNG.

Santos has today also announced an ambitious roadmap to net-zero emissions by 2040 and new emissions targets designed to support Australia's commitment to the Paris Agreement, including a 26-30 per cent reduction in scope 1 and 2 emissions by 2030, and a commitment to actively work with customers to reduce their emissions. 

"Our focus over the last three years on step change technologies such as carbon capture and storage has enabled a pathway that allows us to go further faster when it comes to emissions reduction," Mr Gallagher said.

 

Full PDF version

-----


Earlier:

AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2020, November, 25, 11:45:00
AUSTRALIA'S SANTOS LNG UP
Santos, along with Australia's other east coast LNG projects Australia Pacific LNG and Queensland Curtis LNG, have come under pressure from the federal government in recent years to ensure domestic supply amid concerns of shortages since the development of the export projects.
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2020, November, 20, 13:15:00
AUSTRALIA'S LNG FOR CHINA DOWN
Australian gas exporters argue that their projects are not contingent on Chinese buyers in a growing Asian market.
All Publications »
Tags: AUSTRALIA, SANTOS
Chronicle:
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2021, September, 17, 11:47:00
ENERGY TRANSITION TO CARBON NEUTRALITY AS A FACTOR OF UNPRECEDENTED ACCELERATION OF GLOBAL WARMING
The article reveals the reasons for the unprecedented acceleration of global warming, which was reported by the IPCC in the report "Climate Change 2021", offers proposals for their elimination, as well as for eliminating their consequences.
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2021, September, 17, 11:45:00
NO NUCLEAR FOR SPAIN
Under Spain's nuclear phase-out policy, its nuclear fleet is scheduled to shut down by 2035.
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2021, September, 17, 11:40:00
WIND ENERGY FOE CHILE 980 MW
The US$700m project, which is expected to generate 2 TWh/year, will include 140 turbines with a maximum power of 7 MW.
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2021, September, 17, 11:35:00
U.S. OIL INVENTORIES DOWN BY 6.4 MB TO 417.4 MB
U.S. commercial crude oil inventories decreased by 6.4 million barrels from the previous week to 417.4 million barrels.
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2021, September, 16, 14:00:00
OIL PRICE: ABOVE $75
Brent was up 11 cents, or 0.2%, to $75.57 a barrel, WTI was up 11 cents, or 0.2%, to $75.57 a barrel.
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2021, September, 16, 13:50:00
EUROPEAN CLIMATE ADAPTATION
Adaptation measures include flood prevention measures and renovating buildings to make them more resilient to extreme temperature. The changes required vary across the continent, but recent events have shown that climate change poses a threat to Europe’s cities.
AUSTRALIA'S SANTOS PRODUCTION COST $8.5/BOE
2021, September, 16, 13:45:00
GAS IS A KEY
Despite adaptations of new fuels and technologies to help achieve the net-zero goal, natural gas will continue to play a vital function for the foreseeable future.
All Publications »