Santos Aims to Cut Net Debt by $2.5B, Focus on LNG

Santos Targets $2.5 Billion Net Debt Reduction by 2030, Focuses on LNG

Santos, Australia's second-largest oil and gas producer, announced on Tuesday its plan to reduce net debt by $2.5 billion by 2030 and concentrate investments on major oil and liquefied natural gas (LNG) production in tier-1 basins. The company expects the debt reduction to lower annual interest costs by approximately $150 million.

Investment Priorities and Regional Focus

Santos will prioritize investments in major oil and LNG production to develop tier-1 basins in Alaska and Papua New Guinea, and fully appraise Australia's Beetaloo and Bedout basins to achieve higher margins from existing infrastructure. The company's Australian domestic oil and gas business will be repurposed into a lower capital-intensity, higher-margin operation focused on meeting domestic gas and decommissioning commitments.

Cost Savings and Capital Expenditure

By focusing on higher-margin production in the Moomba Central fields of the Cooper Basin, Santos expects to save $300 million in capital expenditure between 2027 and 2030, with an additional $150 million thereafter. Development of other areas in the Cooper Basin will be deprioritized.