Evolving Santos’ onshore execution and production business to unlock value and growth through the commodity cycles

Abstract

Over the last three years, Santos has transformed its onshore operated assets from high cost assets to strong cash generating assets that are resilient at low oil prices. Santos is now Australia’s lowest cost onshore developer of oil and gas. In the Cooper Basin, Santos has delivered a 61% reduction in the drill, fracture stimulate and complete costs of gas wells since 2014. For Gladstone liquefied natural gas (GLNG), over the same timeframe, the continual review and optimisation of both surface and subsurface designs has led to an 83% reduction in Roma drill, complete, connect costs since the initial phase of Roma development. Key enablers have been (1) organisational focus, (2) a disciplined operating model and (3) a relentless drive for cost and efficiency. Santos continues to strive for further improvements. The company’s competitive cost base and operating capability can now be used to unlock new resources, both within Santos’ current portfolio and for acreage currently held by others, that would have previously been considered sub-economic to develop. Unlocking these new resources will benefit of Santos, joint venturers, customers and communities.