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Record annual production, record sales revenue and record free cash flow

  • Strong base business performance delivered record annual production of 92.1 million barrels of oil equivalent (mmboe), inclusive of 1.7 mmboe from the Oil Search assets from 11 December 2021
  • Stronger commodity prices and higher sales volumes delivered record quarterly sales revenue of
    US$1.5 billion, up 34 per cent, and record annual sales revenue of US$4.7 billion, up 39 per cent
  • Free cash flow is expected to be around US$1.5 billion in 2021, more than double the level in 2020
  • GLNG delivered a record 6.4 million tonnes of LNG sales in 2021
  • Bayu-Undan delivered higher gross gas and liquids production in 2021, which enabled Darwin LNG to produce 3.2 million tonnes of LNG, almost all of which was sold at JKM spot prices
  • Santos’ portfolio average realised LNG price increased by 32 per cent in the quarter to US$13.64/mmBtu

Disciplined and phased growth

  • Barossa 20 per cent complete and progressing on schedule and budget
  • FID on the Moomba carbon capture and storage project taken in November 2021, with first injection expected in 2024
  • Dorado Phase 1 and Pikka Phase 1 projects targeting FID in mid-2022 and first half 2022, respectively

Merger with Oil Search completed

  • On 10 December 2021, Santos announced the merger with Oil Search had become effective following approvals by Oil Search shareholders and the National Court of Papua New Guinea
  • The merger created a company with strong and diversified cash flows, providing a platform to deliver shareholder returns and successfully navigate the transition to a lower carbon future
  • Data in this report includes the Oil Search assets from 11 December 2021, unless otherwise stated

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record annual production and sales revenue in 2021, as strong base business performance positioned the company to benefit from higher commodity prices.

Free cash flow of around US$1.5 billion for the year was also a record and more than double the level in 2020.

“Our disciplined, low-cost operating model continues to drive strong performance across the business and has positioned us to take full advantage of the increase in commodity prices. The completion of the Oil Search merger delivers us the size and scale to deliver even stronger outcomes in 2022 and beyond,” Mr Gallagher said.

“I was particularly pleased that we were able to complete the merger before the end of 2021 and in just 130 days from the announcement of our intent to merge with Oil Search, and this sets us up for what is going to be a very busy 2022.

“Consistent with our strategy, our next stage of growth will be disciplined and phased. The Barossa project is 20 per cent complete and making excellent progress, while I was delighted to announce the final investment decision on the Moomba carbon capture and storage project in November. The Dorado Phase 1 and Pikka Phase 1 projects are progressing towards FID this year.

“Our merger with Oil Search delivers increased scale and capacity to drive a disciplined, low-cost operating model and unrivalled growth opportunities over the next decade – with a vision of becoming a global leader in the energy transition.”