Australia's Santos will prioritise LNG and oil growth in three core regions, including Alaska and Papua New Guinea, under a new strategy that also includes reducing net debt by $2.5 billion by 2030.
"We are now laser-focused on investment in major oil and LNG production across three regions," CEO Kevin Gallagher said while speaking at the company's 2026 Investor Briefing Day on Tuesday.
The country's No.2 oil and gas producer will leverage existing infrastructure on Tier-1 basins in the three regions, including a full appraisal of Australia's Beetaloo and Bedout basins, to drive scale and profitability.
Santos will also focus on fulfilling domestic gas supply commitments and decommissioning obligations, with reduced capital intensity.
Repurposing of the domestic business allows Santos to optimise capital allocation and strengthen balance sheet resilience, Gallagher said.
"The strategic review of our Australian domestic oil and gas business has taken place amidst unprecedented market volatility and a changing policy landscape in Australia," Gallagher said.
Investment will be concentrated in the Moomba Central fields of the Cooper Basin, while development in other areas is being deprioritised — a move expected to reduce expenses by $300 million from 2027 to 2030 and $150 million annually thereafter.
"Santos remains committed to capital allocation framework that will drive shareholder value... and return at least 60% of all-in free cash flow to shareholders," Gallagher said.
The development comes after the firm unveiled plans to cut about 10% of its staff and review its Australian Integrated Oil and Gas portfolio in February.
Earlier this month, Santos achieved first oil from the first phase of its Pikka development project in Alaska, with first sales revenue expected within two to three months.
Shares of the energy firm rose as much as 1.8% to A$80.08, while the benchmark stock index .AXJO traded 0.5% lower.
(Reuters - Reporting by Sherin Sunny & Rajasik Mukherjee in Bengaluru; Editing by Sonali Paul, Sam Holmes and Subhranshu Sahu)