Oil and gas producer Santos has revealed plans to shore up its financial position during the coronavirus pandemic. It will reduce its 2020 capital expenditure (capex) and defer the final investment decision (FID) on its Barossa project.
The Australia-based producer said it would cut its full-year capital spending by $550m, about 38% of its planned budget. It will also cut another $50m from its production costs.
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It has delayed the $7bn FID on the Barossa offshore development project, but not yet given a new timeline.
As part of the announced measures, Santos is aiming for free cash flow breakeven at an oil price of $25 a barrel.
Santos managing director and CEO Kevin Gallagher said: “We are confident in the business continuity and contingency plans that have been implemented and will continue to monitor and introduce additional measures in accordance with Australian Government health advice to protect our people and maintain operations.
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