Santos hammers out AUD 1bn loan facility

Australia’s oil and gas producer, and operator of the GLNG project Santos has secured an additional 3-year, AUD 1 billion (USD 817.5m) bilateral bank loan facility.

Santos says that the new facility with ANZ Banking Group significantly enhances the company’s liquidity profile and financial flexibility at attractive funding costs.

Santos Chief Financial Officer Andrew Seaton said that the facility further strengthens Santos’ conservative liquidity profile.

“This facility provides a substantial buffer over and above the company’s funding needs in the current uncertain oil price environment,” Seaton said.

Santos recently cut planned spending by AUD 700 million (USD 572.4m) and is mulling asset sales as a response to the weakest oil prices in five years.

“The current volatile oil price means that Santos is focused on driving operational efficiency, reducing costs, prudently managing capital and making sure our balance sheet remains strong – without making short term reactive decisions that could damage the long term interests of the company or the interests of shareholders,” said Santos Managing Director & Chief Executive Officer David Knox in an announcement to spending cuts.

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