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