Australia’s Santos said it remains confident its projects will be “better placed” than others when hydrocarbons prices and demand recover, Kallanish Energy reports.
CEO Kevin Gallagher said in the company’s half-year results report Santos’ disciplined, low-cost operating model has allowed it to navigate the current challenging time and remain “well-positioned” for growth on the other side.
“Our projects will be better placed than those in our competitor countries to leverage the opportunities that will inevitably re-emerge,” he said, while providing an update on the projects.
The final investment decision (FID) on the Barossa project has been deferred due to the uncertainty brought up by the pandemic and the lower oil price environment. However, Santos said it has progressed towards value improvement of the project, targeting costs reduction, as the brownfield development remains an important project for Santos due to its low-cost of supply.
“We are also well-progressed on Dorado pre-FEED (front end engineering design) and aim to take a FEED-entry decision on this exciting project in the second half of 2020,” said Gallagher. FID for this project is targeted for 2021, “subject to business conditions.”
A decision allowing the Narrabi gas project to go ahead, by the Australian authorities, is expected in the third quarter.
“We are also progressing FEED work for the Moomba carbon capture and storage project, which has the potential to significantly reduce emissions and be an enabler for the production of hydrogen in the future,” added Gallagher.
A FID for the 1.7 million tonnes per annum is targeted by year-end, with first injection scheduled for 2024.
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