Santos, Australia's largest LNG producer, aims to reduce its net debt by $2.5billion and focus on the production of LNG

Santos, Australia's second largest oil and gas company, said that it aims to reduce its net debt by $2.5billion?by 2030?and focus on?its?investment?in major oil and LNG production in regions with Tier-1 basins.

The company claimed that the net debt reduction targeted by the company would reduce annual interest by approximately $150 million.

The company also stated that it would prioritise investments in major oil and gas production in Alaska and Papua New Guinea, and fully appraise Australia's Beetaloo basin and Bedout basins to increase margins on existing infrastructure.

Santos will repurpose its Australian domestic oil-and-gas business as a "lower-capital-intensity business with higher margins focused on meeting domestic decommissioning and gas commitments," it added.

Santos also plans to save $300 million in capital expenditure between 2027 and 3030 and another $150 million after that by focusing on the Moomba Central field, located in the Cooper Basin. Santos will 'prioritise the development of other areas in 'the Cooper Basin.

(source: Reuters)