The September quarter has set Santos up with a strong balance sheet to deliver its development projects.
Santos has progressed drilling at its Pikka development in Alaska, with rig operations completed on the first three wells and progress occurring on the fourth well.
The Barossa gas project in the Northern Territory, Australia, is 68 per cent complete, however drilling activities remain suspended pending assessment and acceptance of the environmental plan by the regulator.
“Free cash flow of $US1.6 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,” Santos managing director and chief executive officer Kevin Gallagher said.
“Over the last quarter Santos completed the First Nations underwater cultural heritage assessment required prior to pipelaying at Barossa.”
Other highlights from the report include sales revenue of over $US1.4 billion in the third quarter, free cash flow from operations of approximately $US470 million in the third quarter.
This year saw Santos sell its stake in the PNG liquified natural gas (LNG) project to local company Kumul Petroleum Holdings.
A deal to sell a five per cent share to Kumul has been on the cards since 2022; however, the deal has been pushed back a number of times.
“I am pleased we’ve reached a binding agreement with Kumul on the sale of up to five per cent of PNG LNG,” Gallagher said.
“This re-structured transaction is a pragmatic solution that provides a clear pathway to completion and builds our strategic alignment with Kumul and our long friendship with PNG, where Santos has been a committed corporate citizen for over 40 years.
“PNG LNG is a low-cost and low emissions intensity asset that contributes strong cash flows to the project participants and economic and social benefits to the nation.”
