Kevin Gallagher says the acquisition of Quadrant Energy will help reduce the company's breakeven oil price.

Santos to nearly double production by 2025

Wednesday, 26 September, 2018 - 11:08

Santos plans to nearly double natural gas production to more than 100 million barrels of oil equivalent by 2025.

Outlining the company's growth strategy, chief executive Kevin Gallagher said on Wednesday the $2.15 billion acquisition of privately held Quadrant Energy would help reduce the company's breakeven oil price and gave it a leading position in the significant Dorado oil find.

In August, Santos said it expected 2018 production of 55-58 mmboe on growing output from its Cooper Basin assets, and maintained its sales volume guidance of 72-76 mmboe.

Australia's number two gas company also posted a surge in half-year profit and revived its dividend.

The Quadrant takeover gives Santos a business that is the leading supplier of gas into the Western Australian market.

Santos shares rose 1.6 per cent in early trade in a broader market up about 0.3 percent.