Oil and Gas News

Santos reports record output


Santos has released its fourth quarter report for period ending 31 December 2021, detailing record annual production, record sales revenue and record free cashflow. 

The company produced 92.1 million barrels of oil equivalent (mmboe), including 1.7 mmboe from Oil Search assets after Santos acquired the company on 11 December. 

Santos said that stronger commodity prices and higher sales volumes delivered record quarterly sales revenue, totalling US$1.5 billion (AU$2.07 billion) – up 34 per cent – and a record annual sales revenue of US$4.7 billion (AU$6.5) – up 39 per cent. 

Free cash flow is expected to be more than double the level it was in 2020. 

Santos managing director and chief executive offer Kevin Gallagher said the company’s  “disciplined, low-cost operating model” continues to drive strong performance across the business. 

Gallagher also said that the $21 billion acquisition of Papua New Guinea’s Oil Search also helped to buoy the company’s performance. 

“The completion of the Oil Search merger delivers us the size and scale to deliver even stronger outcomes in 2022 and beyond,” said Gallagher. 

Gallagher said the company’s next steps would be “disciplined and phased”, over what he expects to be “a very busy 2022”. 

According to the report, the Barossa project is now 20 per cent complete, and is both on schedule and on budget. 

The final investment decision (FID) on the Moomba carbon capture and storage project was taken in 2021, with the first injection expected in 2024. 

Santos is targeting FID on Dorado Phase 1 and Pikka Phase 1 projects in the first half of 2022. 

Subscribe to Oil & Gas Today for the latest industry news.