Dec 3 (Reuters) - Santos Ltd, on Tuesday upgraded its 2025 production outlook to 120 million barrels of oil equivalent (mmboe) from 100 mmboe, indicating a cumulative annual growth rate of more than 8%.
Australia’s No. 2 independent gas producer also expects capital expenditure in 2020 to increase to a total of $1.45 billion, up 45% from 2019, including spending of $500 million for its key growth projects in Australia and Papua New Guinea.
Santos also forecast initial oil production from its Dorado field off Western Australia, one of its key growth projects, would be between 75,000-100,000 barrels per day, up from an earlier estimate of 50,000 bpd.
Santos, which owns an 80% stake in Dorado and is the operator, said it expects the development of the oil field to cost between $1.9 billion and $2.2 billion.
Dorado is considered Australia’s biggest oil find since 1996.
In October, Santos further consolidated its position in the global gas market by acquiring the northern Australian business of ConocoPhillips in a $1.39 billion deal, which is expected to increase Santos’ output by 25%.
Santos expects the development cost for its Barossa project off northwestern Australia to be $4.7 billion, which the company is aiming to develop to keep the Darwin LNG plant open. The Bayu-Undan gas field that currently feeds the plant is set to run dry in 2022.
The company narrowed its 2019 production guidance range to 74-76 mmboe from its previous forecast of 73-77 mmboe.
Reporting by Niyati Shetty in Bengaluru Editing by Leslie Adler and Marguerita Choy