Australian oil and gas major Santos on Wednesday outlined its plans to grow production to more than 100-million barrels of oil equivalent (mmboe) by 2025, almost doubling current levels of production.
MD and CEO Kevin Gallagher said the successful delivery of the ‘transform-build-grow’ strategy presented to the market in 2016 had positioned the company for disciplined growth.
“Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle,” he said in a statement.
“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.
“It would also give us a leading position in the highly prospective Bedout basin, including the recent significant oil discovery at Dorado.
“We are now positioned for disciplined growth leveraging existing infrastructure in all five of our assets in the portfolio and are targeting production of more than 100 mmboe by 2025.”
Besides the $2.15-billion acquisition of Quadrant, which focuses on Western Australia, Santos’ growth portfolio includes the Barossa backfill to Darwin liquefied natural gas (LNG) project, where a final investment decision will be announced by the end of next year; the PNG LNG expansion and proposed farm-in to P’nyang; and growth in the Cooper basin, eastern Queensland and the Gladstone LNG.