Santos takes $1.1b hit as COVID-19 wipes out oil demand

Source: The Age

23rd July 2020

Oil and gas giant Santos has become the latest Australian producer to take heavy write-downs on the value of its assets, flagging a hit of up to $1.1 billion as coronavirus drains demand for energy.

Following similar moves by global oil majors including BP and Australia’s Woodside Petroleum and Origin Energy, Santos on Tuesday slashed the value of its assets, as an expectation grows across the sector that the pain of the coronavirus-inflicted downturn will be felt for years to come.

Global oil major BP, the first energy giant to take a write-down this year, has warned investors it believed the coronavirus-driven downturn – caused by travel restrictions and lockdowns sapping demand for oil – would accelerate the world’s shift away from fossil fuels and that some demand may never fully recover.

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