CERAWEEK - Australia's Santos will increase investment in the US due to pro energy policy - CEO

Kevin Gallagher, CEO of Santos Australia, said that the company will increase its investments in the United States due to the energy-friendly policies of President Donald Trump and his administration.

Trump wants to maximize the domestic oil and natural gas production, and has reverted many of Joe Biden's policies that were meant to encourage a shift to a low-carbon economy.

Gallagher, in remarks made at the CERAWeek Conference in Houston, said: "We will increase our investment in the U.S. as it is a very attractive proposition. The U.S. has a comparative edge over other countries."

Gallagher, speaking on the sidelines, said that Santos may invest more in its Pikka Project in Alaska where it expects to begin oil production by mid-2020.

Gallagher said, "The U.S. is very pro-development policy setting and we have an excellent project in Alaska with potential and the chance to invest in it in the future."

Gallagher said that the first phase of Pikka, which is expected produce 80,000 barrels of oil per day (bpd), is only 25% the discovered resource. He refused to provide details about what production would be like with additional investment.

Gallagher informed investors last month, that Santos’ annual oil and natural gas production will grow by more than 30% in two year’s time. This is due in part to the Pikka Project.

(source: Reuters)