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Santos gets a $1bn buffer

19th December 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Oil and gas major Santos has secured an additional $1-billion bilateral bank loan facility to enhance the company’s liquidity profile and financial flexibility.

CFO Andrew Seaton said that the new three-year facility further strengthened the company’s conservative liquidity profile.

“This facility provides a substantial buffer over and above the company’s funding needs in the current uncertain oil price environment,” Seaton said.

Santos recently announced that it would cut back on capital expenditure ) during 2015, with the miner reducing planned spend from $2.7-billion to $2-billion. Growth and sustaining capex for 2015 have been estimated at $1.4-billion and $600-million, respectively.

Despite the cuts to capital spending, Santos has maintained its 2015 production guidance of between 57-million and 64-million barrels of oil equivalent

Edited by Creamer Media Reporter

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