By David Winning
SYDNEY--Santos Ltd. raised its annual production guidance and said it was targeting lower costs following a strong operating performance in 2020 so far.
Santos said it now expected to produce between 87 million and 89 million barrels of oil equivalent this year at an average cost of US$8.00 and US$8.50 per barrel. That compared to a prior output goal of 83 million to 88 million BOE.
While the company kept its capital expenditure guidance unchanged at around US$900 million, management said they now expected annual savings from the acquisition of ConocoPhillips' assets in Australia to total US$90 million-US$105 million.
"Our 2020 forecast free cash flow breakeven oil price is less than US$25 per barrel before hedging and around US$20 per barrel after hedging," Chief Executive Kevin Gallagher said.
Santos said it moving toward a final investment decision on the Barossa project offshore Australia, with Darwin LNG approving tolling agreements to transport and process gas from the proposed development through the export facility.
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(END) Dow Jones Newswires