Santos Raises 2025 Production Target to 120 Million Barrels

By Robb M. Stewart

MELBOURNE, Australia--Santos Ltd. (STO.AU) now expects production to jump to 120 million barrels of oil equivalent by 2025, more than double the output of last year, as it absorbs roughly US$1.4 billion in assets it has agreed to buy from ConocoPhillips (COP).

The new target, a jump on the 100 million barrels forecast by the company in 2018, will mark annual production growth of more than 8% through 2025.

In mid-October, Santos struck a deal to buy Conoco's operations in northern Australia and East Timor, including the energy giant's controlling stake in the Darwin LNG gas-export project in which Santos already is a partner. Completion of the deal is expected in the first quarter of next year, the Australian oil and gas producer said.

In a presentation to investors delivered in Sydney, Santos Managing Director and Chief Executive Officer Kevin Gallagher said the production target for 2019 has been narrowed to 74 million to 76 million barrels from 73 million to 77 million previously. Output is expected to rise to between 79 million and 87 million barrels in 2020.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

December 02, 2019 16:37 ET (21:37 GMT)

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