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Barossa Gas Project: Learn more

Robust sales revenue, production and free cash flow

  • Sales revenue of US$1.3 billion in the second quarter
  • Second quarter production of 22.8 mmboe was higher than the prior quarter primarily due to increased domestic gas volumes in Western Australia
  • Successful start-up of Spartan project offshore Western Australia, supplying gas to the domestic market
  • Bayu-Undan continuing to produce and expected to reach end of field life in the second half of 2023
  • Free cash flow of around US$400 million in the second quarter

Strong balance sheet to deliver development projects

  • Completed the US$700 million buyback program. Approximately 139.1 million shares were purchased
  • Barossa project now 66 per cent complete, excluding Darwin Pipeline Duplication project. Drilling activities remain suspended pending assessment and acceptance of the environment plan by the regulator NOPSEMA. Potential for drilling activities to recommence before the end of the year enabling project to remain on schedule for first production in 2025
  • Commenced drilling first Pikka Phase 1 well, which will be used for cuttings disposal
  • Net debt of $4.1 billion and gearing at 21.9 per cent (18.2 per cent excluding operating leases) at 30 June

Santos Energy Solutions focused on decarbonising the energy supply chain

  • Moomba CCS project is 70 per cent complete with first injection expected Q1 2024. Moomba CCS is one of the lowest cost CCS project globally, targeting <US$24 per tonne, lifecycle breakeven
  • Construction of the first 0.25 tonnes per day Direct Air Capture unit complete with optimisation ongoing prior to field trials in the Cooper Basin, expected to commence in the second half of 2023
  • Four MOUs executed to underpin potential CO2 supply to the Bayu-Undan CCS project. Volumes represent more than 10 mtpa CO2 injection capacity

Santos Managing Director and Chief Executive Officer Kevin Gallagher said “our underlying business remains strong and has continued to perform well in a volatile oil price environment. Santos has delivered another solid quarter of production and cash flow generation demonstrating the strength of our business and the benefits of a diversified portfolio.”

“Free cash flow of more than US$1.1 billion in the first half positions the company well to deliver shareholder returns, backfill and sustain our existing business while also investing in our decarbonisation projects.”

“We were also pleased to see positive momentum for our Bayu-Undan CCS project. The Australian Government introduced legislation to the parliament to implement the London Protocol’s cross-border provisions for CO2 transport and storage and the Timor-Leste Government included approval of the necessary legislation and regulation to allow carbon capture and storage activity in the five year legislative program for its new national parliament. These are key regulatory milestones to enable Bayu-Undan CCS.”

“Santos has also advanced its low carbon fuels ambition, establishing a partnership with Osaka Gas to investigate the feasibility of carbon neutral e-methane made from green hydrogen in the Cooper Basin. E-methane is a low carbon, fuel that has the competitive advantage of being able to utilize existing infrastructure across the supply chain for natural gas,” Mr Gallagher said.

“Our disciplined operating model positions us to deliver on our strategy to backfill and sustain our existing infrastructure, decarbonise and develop future low carbon fuels as those markets develop.”