The four core assets identified by Santos are located in Papua New Guinea (Western LNG development), Queensland (Eastern Queensland gas), Northern Australia (Barossa) and Narrabri.
The controversial CSG project in NSW has returned to Santos’ core asset portfolio as new sources for east coast gas supply are marked for development.
The environmental impact statement (EIS) has been submitted to the NSW Government and the approvals process is underway.
Papua New Guinea
With a stake in ExxonMobil’s PNG LNG Project, which is currently operating 30 per cent above nameplate capacity, Santos’ PNG operations are performing well.
Santos has farmed-in to the Western area of PNG and has aligned its exploration position along the Hides-P’nyang trend.
Santos continues to appraise the Muruk gas discovery, and the Karoma-1 exploration prospect is scheduled to spud in Q4 2018.
Santos has outlined that its North Australian operations have a significant resource base that is well positioned for backfill or expansion of existing infrastructure.
A two-well appraisal campaign in the offshore Barossa field has strengthened the potential for an expansion of the Darwin LNG Project, which delivered its 600th cargo in September.
Santos has also discovered multi-Tcf resources across the Browse and Bonaparte basins, with a development study of Petrel-Tern prospect initiated, with the Crown-Lasseter prospect well positioned for backfill or expansion of existing infrastructure.
With Santos’ assets in the Cooper Basin and Queensland being Australia’s lowest-cost onshore operations, Santos is expecting increased exploration to deliver reserves over time.
Santos’ 2018 drilling activity is set to increase, with 70-80 wells to be drilled in the Cooper Basin and approximately 250 more wells for GLNG operations.
This offers Santos medium-term growth opportunities as a result of large uncontracted Eastern Queensland gas reserves.