Energy group Santos has moved to insulate against volatile oil prices by securing a $1 billion loan facility.
Earlier this month, the gas and oil producer announced it is cutting its 2015 capital expenditure by $700 million to $2 billion following plunging in oil prices.
The new three year, $1 billion bilateral bank loan facility was organised by the ANZ bank.
Santos Chief Financial Officer Andrew Seaton said 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.
The company is also considering asset sales.
However, CEO David Knox says the underlying performance of the business remains strong with production continuing to grow in the second half of this year.