Santos Ltd. has closed the yr 2023 with a robust fourth quarter, reporting will increase in efficiency metrics throughout the board.
The corporate stated in a media launch that its manufacturing for the quarter reached 23.4 million barrels of oil equal (MMboe), which was one p.c above the 23.3 MMboe reported for the earlier quarter, primarily as a result of elevated gross sales gasoline manufacturing.
The corporate’s gross sales revenues additionally edged up three p.c from $1.43 billion for Q3 to 1.48 billion. Gross sales volumes reached 25.3 MMboe, 5 p.c above the 24.0 MMboe reported for the third quarter of 2023.
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Nevertheless, by year-on-year comparability Santos’ annual figures represented a decline. Although manufacturing reached the highest finish of the corporate’s steerage at 91.7 MMboe after production-sharing contract deductions, it was nonetheless 11 p.c beneath the 2022 manufacturing. Gross sales volumes slipped 14 p.c whereas gross sales revenues dropped 24 p.c.
Santos Managing Director and Chief Govt Officer Kevin Gallagher assessed that the robust underlying enterprise efficiency, mixed with a disciplined give attention to operational excellence, delivered a robust fourth quarter end for 2023.
“The fourth quarter introduced free money circulation for the total yr to $2.1 billion, an excellent achievement in what has been a difficult yr. It positions us nicely to ship shareholder returns, backfill and maintain our present enterprise, full our main tasks, Barossa and Pikka, progress our decarbonization plans and develop our Santos Vitality Options enterprise”, Gallagher stated.
The Barossa Gasoline Challenge is now 66.4 p.c full, in keeping with Santos. Following approval of the revised Drilling and Completions Atmosphere Plan mid-December 2023, drilling has now recommenced.
The Pikka mission was 37.4 p.c full as of December 31, progressing on time and on funds, in keeping with Santos. Rig operations have been accomplished on 5 wells and work is underway on the sixth nicely. Two wells have been stimulated with one efficiently flowed again and one at present present process flowback operations. Flowback outcomes are in accordance with the prognosis, the corporate stated.
“I’m very happy to see that the Barossa pipelaying and drilling actions at the moment are absolutely below method with first gasoline nonetheless anticipated in 2025. Given the challenges of the previous two years, now we have up to date our value and schedule steerage for the mission. The staff has accomplished an excellent job in conserving Barossa near the unique schedule and managing the prices of delay”, Gallagher stated.
The corporate additionally stated it’s tapping into the robust regional demand for carbon seize and storage (CCS). “Our Moomba CCS mission is on observe for first injection this yr and I imagine will probably be a game-changer for decarbonizing Santos and likewise present decarbonization alternatives for different corporations and hard-to-abate sectors”, Gallagher stated.
The Moomba CCS Challenge is 80 p.c full with the primary injection on observe for mid-2024. Moomba CCS is concentrating on injection prices of $24 per metric ton lifecycle breakeven, placing it on the decrease finish of the worldwide CCS value curve, in keeping with Santos. Relying on out there CO2 volumes, Moomba CCS may retailer as much as 1.7 million metric tons of CO2 per yr, equal to 10 p.c of the annual common emissions discount price wanted to fulfill Australia’s 2030 and 2050 emissions targets, the corporate stated.
Movement testing on all 4 injection wells for Moomba CCS has been accomplished. “Our operational focus for 2024 is the execution of the Barossa, Pikka and Moomba CCS tasks while sustaining a robust steadiness sheet”, Gallagher stated.
On the potential merger with compatriot Woodside, Gallagher stated the corporate is in early-stage dialogue to guage the benefit of the transaction.
“The events have agreed to alternate data to evaluate the advantages for our shareholders. Santos continues to think about various choices to speed up worth for shareholders. There isn’t a certainty that any transaction will eventuate from these discussions”, Gallagher stated.
To contact the writer, e mail andreson.n.paul@gmail.com
