The Santos Ltd (ASX: STO) share price is on the rise in early trade after a production update from the Aussie oil and gas giant this morning. At the time of writing, the Santos share price has edged 0.99% higher to $7.15.
Let’s take a look at what the company announced.
What’s driving the Santos share price?
Santos provided an update on production at its Ningaloo Vision floating production storage and offloading vessel (Ningaloo Vision). This comes after scheduled vessel maintenance in Singapore.
Ningaloo Vision, which ties together several oil fields off the Western Australian coast, has now ramped-up production again. The offshore vessel is expected to achieve production of 10,000 barrels per day in the coming weeks.
Santos managing director and CEO Kevin Gallagher said the vessel’s return to production sets the company up for the next stage of production from the Van Gogh oil field. Santos has a 52.5% interest in the Van Gogh-Coniston-Navara project with the remaining 47.5% held by Inpex.
How has Santos performed recently?
The Santos share price has surged higher in the last 12 months after a large share price collapse in March 2020.
Oil prices plummeted last year as the coronavirus pandemic took hold. Demand for energy collapsed as widespread border closures and localised lockdowns reduced usage in key industries like travel and manufacturing.
That saw the Santos share price plummet lower, which somewhat skews the story of the company’s recent performance.
Foolish takeaway
The Santos share price is responding positively after today’s update from Ningaloo Vision, with the vessel expected to add 10,000 barrels per day.
According to Bloomberg, however, overnight the WTI and Brent crude oil prices fell 4.4% and 4% lower, respectively. WTI closed at US$58.49 per barrel while the Brent crude oil price fell to US$61.82 per barrel. This could be subduing the impact on the company’s share price of its positive update today.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- Why is the ASX 200 (ASX:XJO) so reliant on the US stock market?
- 5 things to watch on the ASX 200 on Friday
- ASX 200 rises, Brickworks builds, Netwealth sinks
- Why is the Woolworths (ASX:WOW) share price up 5% in a week?
- 2 ASX 200 shares that keep growing their dividends
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Santos (ASX:STO) share price rises on production update appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/2PuIS8S
Leave a Reply