Australian gas producer Santos to double production by 2025

Independent gas producer Santos Ltd has announced on Wednesday it plans to nearly double production to 100 million barrels by 2025.

Santos

Santos Chief Executive Kevin Gallagher said the company’s growth strategy was progressing well with the recent $2.5 billion acquisition of privately held Quadrant Energy helping to reduce the company’s breakeven oil price.

Mr Gallagher said this also gave the company a leading position in the significant Dorado oil find.

Santos share prices have risen as much as 1.9 % since the news, their highest since 2015.

‘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.’ Mr Gallagher said.

Since 2016 the company’s growth strategy has delivered a diverse portfolio of long-life natural gas assets, generating free cash flow. As part of their growth strategy they have succeeded as one of Australia’s lowest-cost onshore operations.

“Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle,” Mr Gallagher said.

The announcement comes after Santos revealed earlier this month it had signed a new long term natural gas supply agreement with Brickworks Limited for its east coast operations through to the end of 2024.

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