ASX-listed Santos has revised its 2025 production target to 120-million barrels of oil equivalent, which is more than double its 2018 output.
The new target, up from the 100-million-barrel guidance set in 2018, represents a cumulative annual growth rate in production of 8% to 2025.
“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 about $29/bl,” said Santos CEO and MD Kevin Gallagher.
The company’s recently announced acquisition of ConocoPhillips’ interests in northern Australia and Timor-Leste will further reduce its breakeven oil price and deliver operating interests in long-life, low-cost conventional natural gas assets and strategic liquefied natural gas infrastructure.
Santos’ growth portfolio includes start-up projects, projects that are ramping up and expansions at its Barossa, Dorago, Papua New Guinea, GLNG and Cooper Basin projects.
Gallagher explained that natural gas was forecast to supply a quarter of the world’s total energy demand by 2040.