Santos' PNG Gas Project: 50% IRR, 4-Year Payback

Santos New Gas Project in Papua New Guinea: A Lucrative Expansion Santos has approved a significant gas project in Papua New Guinea, set to increase production by 135 million standard cubic feet per day, with Santos share at 54 million. This project promises high returns, with an internal rate of return over 50% and a payback period of less than four years. It leverages the existing PNG LNG infrastructure, converting 66 million barrels of oil equivalent in untapped reserves into active ones, ensuring a 12-year production peak that could extend beyond 2050. This move aligns with global LNG players pursuit of low-risk expansions to maintain strong exports, driven by consistent Asian demand for gas. Santos holds nearly 40% stake alongside ExxonMobil PNG, ENEOS Xplora, Kumul Petroleum, and the local Mineral Resources Development Company, positioning this as a strategic move to sustain long-term output. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/ca9ac41369ffd203