Santos says permits G-9-AP and G-11-AP will enable the company, which recently took over PNG's Oil Search, to pursue CCS opportunities with its joint venture partner Chevron.

 

Santos CEO Kevin Gallagher said the permits built on Santos' CCS strategy.

 

"Carbon capture and storage is critical for the world to reduce emissions and in line with Santos' net-zero scope one and two equity-share emissions by 2040 target, we are committed to looking at all options for CCS capabilities," Gallagher said.

 

"Santos is working towards developing its three hub CCS strategy across our operating footprint in Australia and Timor-Leste, and the award of these permits represents further demonstration of our commitment to that strategy.

 

"In the Carnarvon Basin, the permit creates potential new acreage for CCS beyond our Reindeer fields. This is particularly important as our plans for a WA CCS hub at Reindeer and Devil Creek develop.

 

"The other permit is substantial in size, covering more than 26,000 square kilometres in the Bonaparte Basin. Its proximity to our Bayu-Undan CCS project, which has the potential to be one of the largest CCS projects in the world, is important as we look to build our Northern Australia and Timor-Leste CCS hub.

 

"Santos, we have the technology, infrastructure and knowledge to be able to deliver low-cost CCS competitively on a global scale. We know a large scale-up of CCS is required to meet the world's climate objectives.

 

"Working with our partners to assess the storage potential in these permit areas will provide us with a greater understanding of the geology and inform us of the possible storage opportunities."

 

Santos says its first CCS project at Moomba will be one of the biggest in the world and paves the way for a carbon reduction and strategy for Australia. The project is 20% complete, with 100 million tonnes of carbon dioxide capacity and contingent resources already booked.

 

In addition, Santos' Bayu-Undan CCS project entered into front-end engineering and design phase earlier this year.

 

G-9-AP has been awarded to Santos (50% and operator) and Chevron (50%) and covers an area of 3589 square kilometres within the Carnarvon Basin.

 

G-11-AP has been awarded to Santos (40% and operator), Chevron (30%) and SK E&S (30%) and covers an area of 26,239 square kilometres within the Bonaparte Basin.

 

Globally, there are 133 commercial CCS projects operational or under development.