Santos today said it would continue to sell-off non-core infrastructure as part of its new investor focused strategy.
The firm also confirmed it had cut 500 jobs in a bid to re-balance its books.
Santos managing director and chief executive officer Kevin Gallagher said the business simplify, focusing on five core natural gas assets – Cooper Basin; GLNG; PNG; Northern Australia, and Western Australia Gas.
Santos will also target a $1.5billion reduction in net debt to less than $3billion by the end of 2019 through increased operating cash flow and releasing capital through non-core asset and infrastructure sales.
“We have reduced the free cash flow breakeven oil price to US$39 per barrel, down from US$47 per barrel at the start of the year,” Mr Gallagher said.
“Capital expenditure and upstream unit production costs have been reduced by 53% and 17% respectively, headcount has been reduced by more than 500 positions, and the business has been free cash flow positive for each of the last seven months.
“Our turnaround strategy also brings significant oil price leverage, with operating cash flow forecast to increase by US$300 million in 2017 for a US$10 per barrel oil price move above US$50 per barrel.”