Santos Reports 1.48 Billion Boe 2P Reserves with 17-Year Life Span

Stable Reserves Amid Production and Divestments

Santos Limited has released its 2025 Annual Reserves Statement, revealing proved plus probable (2P) reserves of 1,484 million barrels of oil equivalent (mmboe). This figure represents a modest 5% decline from 2024, primarily due to production of 88 mmboe and the divestment of interests in the Petrel and Tern fields. However, the company offset these reductions with new additions of 13 mmboe, mainly from the Cooper Basin and Papua New Guinea assets.

The company’s reserves life remains robust at 17 years, supported by a strong 95% replacement ratio for proved (1P) reserves. Notably, developed reserves now account for 62% of total 2P reserves, up from 40% the previous year, signalling a shift towards more immediately producible resources.

Strategic Growth in CO2 Storage Capacity

In a clear nod to sustainability and future-proofing, Santos has expanded its 2C contingent CO2 storage resources by 24 million tonnes to 202 million tonnes, concentrated in the Cooper Basin. This increase follows the injection of 1 million tonnes of CO2 since the Moomba Carbon Capture and Storage (CCS) project’s start-up, with proved plus probable CO2 storage capacity now at 8 million tonnes.

Managing Director Kevin Gallagher emphasised the importance of these developments, highlighting that the expanded CO2 storage capacity is a key pillar of Santos’ decarbonisation strategy and positions the company to meet growing customer demand for carbon storage solutions.

Preliminary Financial Guidance Reflects Operational Realities

Alongside reserves data, Santos provided preliminary, unaudited guidance for its 2025 full-year financial results. The company anticipates revenue from product sales of approximately $4.94 billion, with cost of sales estimated between $3.25 billion and $3.3 billion. These costs encompass production expenses, LNG plant operations, pipeline tariffs, royalties, and depreciation.

Impairment losses are forecast at around $137 million, including a second-half charge related to assets in the US and Papua New Guinea. Other expenses, such as administrative costs and exploration write-downs, are expected to total roughly $375-$395 million. The effective tax rate is projected at about 31%, with net finance costs estimated between $250 million and $265 million.

Outlook and Market Implications

Santos’ 2025 reserves and financial guidance paint a picture of a company balancing steady resource base management with strategic investments in carbon capture infrastructure. The increase in developed reserves and CO2 storage capacity suggests a focus on near-term production and long-term environmental commitments.

Investors will be watching closely as the company finalises its audited financial statements and monitors market conditions that could impact reserves valuation and operational costs. The evolving energy landscape, particularly the transition to lower emissions, positions Santos’ CCS capabilities as a potential competitive advantage.