Oil and Gas News

Santos bolsters future with reserves growth

Santos has reported proved plus probable (2P) reserves of 933 million barrels of oil equivalent (mmboe) at the end of 2020, marking an increase of 34 mmboe before production.

Managing director and chief executive officer Kevin Gallagher said the company was pleased to release its annual reserves statement, highlighting strong reserves replacement over three years and positive results in its onshore assets.

“Today’s statement is the result of Santos’ disciplined annual reserves review and accounting processes, which include external audit of approximately 95 per cent of total 2P reserves. We are also pleased to revert to our previous process of releasing our reserves and resources ahead of our annual results,” Gallagher said.

Contributing to the increase, the company’s acquisition of ConocoPhillips’ assets in northern Australia and Timor-Leste combined with the sanction of infill drilling in the Bayu-Undan field added 41 mmboe in 2020.

In addition, a final investment decision on the Barossa project is expected in the first half of 2021, which would see 380 mmboe commercialised to 2P reserves.

Consistent application of Santos’ disciplined operating model delivered reserves increases in the onshore assets in 2020.

The Cooper Basin achieved 102 per cent three-year 2P reserves replacement and a 2C to 2P conversion rate of 70 per cent.

Reserves upgrades were also delivered in Gladstone LNG’s (GLNG) Fairview, Roma and Arcadia fields, and GLNG achieved 184 per cent 2P reserves replacement in 2020.

Santos further reported that its reserve additions were partially offset by a a reclassification of 16 mmboe of Juha 2P reserves in Papua New Guinea (PNG) to contingent resources and a 27 mmboe 2P reserves revision at the Reindeer gas field, offshore Western Australia. 

In 2018, the company acquired an additional 55 per cent interest in the Reindeer field through Quadrant Energy, which delivered a leading position in the Bedout Basin, and an 80 per cent interest in the Dorado field where front end engineering design-entry is targeted for the first half of 2021.

Western Australia’s 2P sales gas reserves at the end of last year hit 1277 petajoules, 1,275 petajoules of 2C sales gas resource and 401 mmboe of total 2C resource when including liquids for the company at the end of 2020.