You are using an outdated browser. Please upgrade your browser to improve your experience.
Skip to content
Barossa Gas Project: Learn more

Robust sales revenue, production and free cash flow

  • Sales revenue of more than US$1.4 billion in the third quarter.
  • Third quarter production of 23.3 mmboe was slightly higher than the prior quarter primarily due to increased crude oil production in PNG.
  • Bayu-Undan continuing to produce with at least one more LNG cargo expected, followed by sales into the Australian domestic market until end of field life.
  • Free cash flow from operations of around US$470 million in the third quarter and US$1.6 billion year to date.

Strong balance sheet to deliver development projects

  • Pikka drilling is progressing with rig operations completed on the first three wells and the fourth well in progress. One well has been stimulated and flowed back for cleanup and data collection.
  • Barossa project now 68 per cent complete, excluding Darwin Pipeline Duplication project. Drilling activities remain suspended pending assessment and acceptance of the associated environment plan by the regulator.
  • In October Santos notified NOPSEMA that it plans to commence pipelay activities on the Barossa Gas Project after complying with the requirements of the General Direction issued by the regulator.
  • In September Santos conducted a debt offering and successfully priced a US$850 million senior unsecured transaction in the US dollar 144A/RegS market.
  • Net debt of $4.3 billion and gearing at 19.3 per cent excluding operating leases (22.6 per cent including operating leases) at 30 September 2023.

Santos Energy Solutions focused on decarbonising the energy supply chain

  • Moomba CCS project is 75 per cent complete with first injection on track for mid 2024. Moomba CCS is targeting ~US$24 per tonne, lifecycle breakeven which will make it one of the lower cost CCS projects globally.
  • The 0.25 tonnes per day Direct Air Capture (DAC) unit arrived in Moomba during the quarter with pre-field trials commissioning work  successfully completed in Perth.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the underlying business performance, combined with a strong focus on operational excellence, delivered yet another strong quarter.

“Free cash flow of US$1.6 billion year-to-date positions the company well to deliver shareholder returns, backfill and sustain our existing business, while also investing in our major projects and progressing our decarbonisation plans,” Mr Gallagher said.

“Over the last quarter Santos completed the First Nations underwater cultural heritage assessment required prior to pipelaying at Barossa. In response to the General Direction issued by the regulator, the independent expert concluded after extensive research and interviews that ‘there were no specific underwater cultural heritage places along the planned Barossa pipeline route that may be affected by the activities’ covered by the pipeline environmental plan.

“The Santos Energy Solutions business is advancing with the Moomba CCS project, it is now 75 per cent complete and on track for start-up in mid-2024. This project will be the only CCS project in Australia that has currently qualified to generate Australian Carbon Credit Units for CO2 injected and stored in Cooper Basin reservoirs. Direct Air Capture field trials at Moomba will also begin this year, with the unit having arrived onsite in September.

“We were also pleased to see further positive momentum for our Bayu-Undan CCS project with legislation to implement the London Protocol’s cross-border provisions for CO2 transport and storage passing the House of Representatives and Senate Environment and Communications Legislation Committee recommending the bill will be passed.”