Santos reviews spending after oil fall
Santos is reviewing all its capital spending plans in light of the collapse in oil prices and will stop all new hiring.
Santos, Australia’s No.2 independent gas producer, is reviewing all its capital spending plans in light of the collapse in oil prices and will stop all new hiring.
Santos had planned to spend $US1.45 billion ($A2.36 billion) in 2020, including $US500 million on major growth activities, focused on its Barossa gas project off northern Australia and the Dorado oil project off Western Australia.
“Santos is currently reviewing all discretionary capex activities and will be freezing new external hiring for now but there are no plans for mass job cuts because we have focused over the last few years on being right-sized to remain resilient at low oil prices,” Santos chief executive Kevin Gallagher said in emailed comments to Reuters.
The company still expects to complete the $US1.39 billion acquisition of the Bayu-Undan and Darwin LNG assets from ConocoPhillips in the current quarter, a Santos spokesman said.
The company still aims to reach a final investment decision on the $US4.7 billion Barossa project and reach a decision on starting early engineering work on the $2 billion Dorado project by the end of the second quarter, he said.
Santos shares were $3.77 before for the start of ASX trading.
Reuters
