Santos's Mideast impact will last for many years and its shipping routes avoid chokepoints

Australia's?Santos stated on Thursday that the Middle East?conflict had upended energy markets, with effects likely to?permanently?permanent for?years. It also noted?its liquefied?natural?gas shipping routes are far removed from high-risk?chokepoints.

These comments are made as the Middle East remains volatile despite diplomatic efforts, sporadic talks and increased risks around the Strait of Hormuz. This is a vital artery for the global oil and gas supply.

Santos Chairman Keith Spence has also announced that he will retire after the 2027 Annual General Meeting. A "orderly succession process" is already underway.

He said that the appointment of his successor as a "future chief Executive" would be up to him.

Spence, addressing investors in the company's annual meeting, said: "Recent disruptions and attacks on the global energy infrastructure highlighted the strategic advantages of Australian LNG to our Asia-Pacific partners."

Energy producer says first oil production from its Pikka project is "imminent". Previously, it had said that the company expected output to start in the next few weeks.

Santos has said that 83% of their LNG portfolio is already contracted for the next five years. This leaves a certain volume to be exposed to spot markets. This allows some flexibility as global supply tightens.

The shares of 'the company' fell by as much as 2.1% at 0124 GMT. This was below the 0.6% drop in the energy sub-index.

(source: Reuters)