“Santos today announced an impairment to the value of its NSW gas assets.  As is being seen across the international oil and gas sector, a sharp reduction in oil prices is having an impact on value and our NSW assets are not immune.

“This price impact, together with the previously announced 30% reduction in the 2P reserves base due to the delays and deferrals to our exploration program necessary to underpin the resource base of an important new source of natural gas supply for NSW, has resulted in this non cash impairment.

“This action does not change our view about the Narrabri Gas Project and the importance of NSW developing its own natural gas supplies.  We remain focused on supplying natural gas to the 1 million families in NSW that use our product and the thousands of people who rely on the energy provided by gas for their employment.

“Our current operations in NSW will continue as we work with investors, customers, the NSW Government and our local community to supply up to 50% of the States’ natural gas requirements.

“The time frame of any investment decision enabling first gas from this project continues to depend upon a range of factors including support from customers, investors, the Government and our local community. We continue to work towards having first gas towards the later part of the decade.

“The current focus is the finalisation of the EIS, which will be lodged in the coming months and is an important step to ensure our development meets the highest environmental standards.”

Peter Mitchley, General Manager – Santos Energy NSW

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