Santos has announced $1 billion in bonds for corporate purposes

Alan Bailey

for Petroleum News

Santos Limited, owning company of Oil Search (Alaska) LLC, has announced the imminent issue of $1 billion in new bonds. Oil Search is developing the Pikka oil field on Alaska's North Slope. Santos says that the proceeds from the bond sale will be used for "general corporate purposes." The bonds will mature in November 2035 and have been priced at a fixed coupon of 5.75%.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said that the issue of the bonds demonstrates strong support for the company from debt capital markets and will ensure the continued financial support for the execution of the company's strategy.

"This is an excellent result for Santos," Gallagher said. "Securing attractively priced, long term capital positions Santos to build and grow production in a disciplined way, so that we can generate strong cash flows and returns for our shareholders from our high-quality, diversified portfolio."

As recently reported by Petroleum News, Santos has indicated that it has brought forward its guidance for likely first oil from the Pikka field from mid-2026 to first quarter 2026. The company expects production to ramp up to 80,000 barrels per day in the second quarter 2026. Beyond the Pikka field itself, the company also has similar oil development opportunities in the nearby Horseshoe and Quokka units.

-ALAN BAILEY