Santos to Focus Investment on Three Regions, Repurpose Australian Assets
Santos Shifts Investment Strategy
Santos announced it will focus investments on three regions: Alaska, Papua New Guinea, and Australia's Beetaloo and Bedout basins. The company will repurpose its Australian domestic oil and natural gas assets into a lower capital-intensity, higher-margin business.
Significant Savings Expected in Cooper Basin
By focusing on higher-margin production in the Moomba Central fields area and deprioritizing other areas of the Cooper, Santos expects to save $300 million in capex between 2027 and 2030, and an additional $150 million annually thereafter. This strategic shift supports a planned step-up in returns to shareholders under its new capital framework.
New Capital Framework and Debt Reduction Target
Santos aims to keep gearing at the lower end of its 15-25% target range and reduce net debt by approximately $2.5 billion by 2030. The company recently started up the Barossa natural-gas project, now operating at 75% of planned production rates, and announced first oil from the Pikka Phase 1 development in Alaska.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
The news, analyses, and comments on this platform do not constitute investment advice. When making investment decisions, you should conduct your own research and consult with a qualified financial advisor if necessary. FiNews cannot be held responsible for any losses that may arise from the use of this information.
More Headlines
Tokyo Core Inflation Slows, Remains Below BOJ Target
Tokyo Core Inflation Slows, Remains Below BOJ Target
…Nikkei May Rise on Hopes for U.S.-Iran Peace Deal
Nikkei May Rise on Hopes for U.S.-Iran Peace Deal
…Australian Pension Fund HUB24 Faces Regulatory Scrutiny
Australian Pension Fund HUB24 Faces Regulatory Scrutiny
…