Oz Santos Announces Further Write-Downs
Australian explorer Santos on February 15 announced a further US$139mn write-downs in the 12 months ending December 31. This is in addition to impairments of US$756mn announced for the first half of 2020.
Santos said it expects to recognise an impairment of goodwill of approximately US$98mn before and after tax in the 2020 full-year results to be released on February 18 as a result of the Reindeer gas reserves revision. The company also expects other impairment charges of approximately US$41mn before tax (US$29mn after-tax) related to other late-life, exploration and evaluation assets as part of the regular review of asset carrying values.
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Meanwhile, Santos reported a before production proved plus probable (2P) reserves of 933mn barrels of oil equivalent (boe) at the end of 2020, an increase of 34mn boe before production.
The acquisition of ConocoPhillips' assets in Northern Australia and Timor-Leste combined with the sanction of infill drilling in the Bayu-Undan field added 41mn boe in 2020. A final investment decision on the Barossa project is expected in the first half of 2021 would see approximately 380mn boe commercialised to 2P reserves, Santos said.