Santos is taking a $1.6 billion asset hit on plunging oil prices

Getty/Sean Gallup

Santos is taking a $1.564 billion write down on its assets as the price of oil continues its sharp slide.

The oil and gas explorer says the impairment charge reflects lower oil prices and is a non-cash accounting adjustment.

No writedowns have been made to the $US18.5 billion GLNG natural gas project being built in Queensland near Gladstone.

The company’s results will be released February 20.

Oil prices have halved to about $US50 a barrel over the last 12 months but Santos is estimating a recovery to $US90 by 2019.

Santos stocks are weaker today by about 2% to $7.55.

Another large energy group, Woodside Petroleum, last month said it expects to take write-downs of between $US250 million and $US400 million

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