Australia-Pacific LNG project shareholder Santos said it was set to advance with production expansion, including using the Barossa feed-gas field for Darwin LNG and investment in the construction of additional Trains for the Papua New Guinea export plant.
Santos said it was lifting its 2025 production target further to 120 million barrels of oil equivalent, more than double last year’s figure.
“The new target, up from 100 mmboe set in 2018, represents a cumulative annual growth rate in production of over 8 percent to 2025,” said the company.
Santos gave the update at the company’s Investor Day event in Sydney addressed by Santos Chief Executive Kevin Gallagher.
“Our strategy has been to establish a disciplined low-cost operating model that delivers strong cash flows through the oil price cycle,” stated the CEO.
“Our 2019 forecast free cash flow breakeven oil price is now US$29 per barrel,” he explained.
“The recently announced acquisition of the ConocoPhillips interests in northern Australia and Timor-Leste will further reduce our breakeven oil price and deliver operating interests in long-life, low-cost conventional natural gas assets and strategic LNG infrastructure,” added Gallagher.
“We are now positioned for disciplined growth leveraging existing infrastructure in all five of our core assets,” he said.
The Barossa LNG project for the Darwin plant purchased from ConocoPhillips has a final investment decision scheduled for the first quarter of 2020.
Santos said PNG LNG expansion was still heading for a start in front-end engineering and design in 2020.