Australian Santos pays $ 560 million for Corona Virus outbreak and oil slump
July 24, 2020
In recent days, Santos Australia has announced that it will pay $ 560 million in non-cash payments after taxes and, like other oil and energy industry leaders, will pay compensation for the stagnation in the oil industry caused by the outbreak of the pandemic virus.
Australia’s second-largest gas producer will pay non-cash costs of between $ 490 million and $ 560 million after taxes, according to a statement.
Most of the costs due to the Santos Gladstone Natural Gas (LNG) disruption project in the Cooper Basin in Queensland are due to a 10% reduction in oil prices in the long run.
Energy companies have been forced to use their assets to cut losses from the outbreak of the coronavirus following falling oil prices and the disruption of talks between Russia and Saudi Arabia.
Woodside, Australia’s top independent gas producer, warned its affiliates BP and Royal DutchShell’s last week that they would be required to pay $ 4.37 Billion for the first-half results.
Adelaide-based Santos said they have enough savings to pay off debt over the next few years, and that the disruptions will not affect their reserves.
