What is Sales and Marketing Strategy of Santos Company?

What is Santos' Sales and Marketing Strategy?

Santos, an Australian oil and gas leader, is evolving its sales and marketing by focusing on decarbonization and carbon capture. Its strategy now emphasizes environmental impact alongside traditional energy supply.

The company's commitment to carbon capture and storage (CCS) projects, like the Moomba CCS, showcases its dedication to reducing emissions. This initiative, which began operations in September 2024, highlights its environmental stewardship and cost-efficiency, with sequestration costs below US$28 per tonne.

What is the sales and marketing strategy of Santos Company?

Santos' sales and marketing strategy has transformed from its origins in oil exploration to a global energy provider. In 2024, the company achieved US$5.4 billion in sales revenue, with sales volumes reaching 91.7 million barrels of oil equivalent (mmboe). This performance reflects its success in adapting to market demands, including strong demand in Asia for high heating value LNG, and its strategic positioning in low-carbon fuels. Understanding the Santos BCG Matrix can further illuminate its product portfolio strategy.

Santos Company's sales strategy is built upon direct engagement and enduring partnerships. The company primarily utilizes its direct sales teams and establishes long-term supply agreements to serve its clientele, which predominantly comprises businesses and governmental entities requiring dependable energy provisions.

Direct Sales Approach

Santos Company employs dedicated direct sales teams to engage with its core customer base. This method is particularly effective for its hydrocarbon products, especially Liquefied Natural Gas (LNG), ensuring tailored solutions for business and government clients.

Long-Term Supply Agreements

The company prioritizes long-term supply agreements to secure consistent demand and foster stable revenue streams. These agreements are fundamental to its business plan, particularly for its significant LNG operations.

Strategic Asset Hub Focus

The evolution of Santos Company's sales channels is intrinsically linked to its strategic concentration on key asset hubs. This includes significant operations in the Cooper Basin and Queensland, underpinning its market presence.

LNG Market Expansion

Santos Company's LNG marketing division has been actively securing substantial supply agreements with Asian partners. This expansion is a key component of its growth strategy, leveraging its global portfolio of world-class LNG assets.

Key LNG Supply Agreements

Santos Company has solidified its position in the LNG market through several significant agreements in 2024. These partnerships highlight its robust customer relationships and expanding market share.

• In December 2024, a binding long-term supply and purchase agreement was signed with Japan's Shizuoka Gas for the delivery of 0.35 to 0.4 million tonnes per annum (mtpa) of LNG over 12 years, commencing in 2032.
• Prior agreements in 2024 include those with Hokkaido Gas (May 2024), Glencore Singapore (September 2024), and TotalEnergies Gas & Power Asia (October 2024).
• The agreement with TotalEnergies Gas & Power Asia involves supplying approximately 0.5 million tonnes of LNG annually over three years and one quarter, starting in Q4 2025.
• These agreements demonstrate the company's strong LNG portfolio and its effective customer acquisition tactics in the Asian market, reflecting its overall Brief History of Santos and its strategic approach to market penetration.

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Santos Company's marketing tactics are primarily focused on building awareness, generating leads, and driving sales within its business-to-business and government sectors. The strategy emphasizes investor relations and showcasing its commitment to reliable energy supply and sustainability.

Content Marketing

The company utilizes its corporate website for content marketing, publishing annual reports, sustainability reports, and investor briefings. This approach ensures transparency and keeps stakeholders informed about its performance.

Public Relations and Media

Public relations and media releases are key for highlighting significant milestones. For instance, the successful startup of the Moomba Carbon Capture and Storage project in September 2024 was widely communicated.

Investor Communications

Investor briefings and webcasts, such as the 2024 Investor Day, are used to communicate financial performance and strategic direction. The company targets shareholder returns of at least 60% of all-in free cash flow from 2026.

Highlighting Sustainability Initiatives

The Moomba CCS project, which had sequestered over 600,000 tonnes of CO2 by April 2025, is a central message. This highlights its environmental impact and cost-effectiveness.

Data-Driven Reporting

The company demonstrates a data-driven approach by reporting key metrics. This includes sales revenue of US$5.4 billion in 2024 and sales volumes of 91.7 mmboe in the same year.

Financial Performance Communication

Net profit after tax was US$1.2 billion in 2024, a figure communicated to stakeholders. This financial data underscores the effectiveness of its sales and marketing strategies.

Key Marketing Elements

The Santos Company sales strategy is deeply integrated with its marketing efforts, focusing on building trust and demonstrating value to its B2B and government clients. This approach is crucial in an industry where long-term relationships and reliability are paramount.

• Brand Positioning: Positioning as a reliable energy provider with a commitment to sustainability.
• Messaging: Emphasis on operational excellence, financial performance, and environmental initiatives like CCS.
• Target Audience: Primarily investors, government bodies, and business partners.
• Digital Presence: Corporate website as a central hub for reports and investor information.
• Public Relations: Proactive media engagement to announce significant project milestones and achievements.
• Investor Relations: Regular communication through briefings and webcasts to update shareholders on strategy and performance, as detailed in this article on the Competitors Landscape of Santos.

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Santos positions its brand as a global energy provider focused on reliability, affordability, and the transition to a lower-carbon future. The company's core message highlights its dual role in meeting current energy demands while actively pursuing decarbonization initiatives.

Global Energy Provider with a Low-Carbon Focus

Santos emphasizes its commitment to delivering dependable and cost-effective energy solutions. Simultaneously, it champions its role in driving decarbonization efforts and fostering a transition towards a lower-carbon energy landscape.

Differentiated Asset Portfolio and Decarbonization Investments

The company distinguishes itself through its extensive oil and gas assets across multiple regions. Significant investments in carbon capture and storage (CCS) and low-carbon fuel development further underscore its strategic direction.

Appeal to Key Stakeholders

Santos targets institutional investors, governments, and industrial customers by showcasing operational efficiency, financial robustness, and a strong commitment to sustainability principles.

Proof Points for Decarbonization Strategy

The successful startup of the Moomba CCS project in September 2024, which reduced equity emissions by 26% from the 2019-20 baseline, is a key demonstration of its decarbonization progress, achieving 84% of its 2030 emissions reduction target.

Santos reinforces its position by highlighting long-term LNG supply agreements with Asian partners, underscoring its contribution to regional energy security. Brand consistency is maintained across all communications, consistently conveying its purpose, vision, and strategy, including its Mission, Vision & Core Values of Santos and its Vision 2040 for net-zero Scope 1 and 2 emissions. The company actively engages with investors, conducting 151 meetings in 2024, to ensure transparency and address concerns, thereby responding to evolving market dynamics and competitive pressures.

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Santos Company's sales and marketing strategy is currently focused on highlighting its major development projects and its commitment to sustainability. These efforts aim to build confidence among investors and stakeholders regarding the company's future in a dynamic energy market.

Strategic Project Showcases

Key campaigns are promoting the Barossa Gas Project and the Pikka Phase 1 oil project. Barossa is nearing completion at 97%, with first gas anticipated in Q3 2025. Pikka is 89% complete, targeting first oil in mid-2026.

Growth and Cost Reduction Focus

These projects are vital for boosting Santos Company's production by over 30% by 2027 compared to 2024. This expansion is expected to significantly lower unit production costs and drive strong free cash flow generation.

Decarbonization Initiatives Highlighted

A significant marketing push centers on the company's decarbonization efforts, particularly the Moomba Carbon Capture and Storage (CCS) project. Launched in September 2024, this initiative is central to the company's climate transition plan.

CCS Project Success and Future Potential

The Moomba CCS project has already sequestered over 600,000 tonnes of CO2 by April 2025, showcasing its potential for future expansion. This success is a key theme in investor communications and public relations efforts.

The primary channels for communicating these campaigns include investor briefings, annual reports, and media releases. The overarching objectives are to demonstrate financial prudence, a commitment to shareholder returns—targeting at least 60% of all-in free cash flow from 2026—and tangible progress towards emissions reduction targets, aligning with the Santos Company business plan.

Investor Confidence Building

Marketing efforts focus on reassuring investors about long-term viability. This includes detailed updates on major projects like Barossa and Pikka.

Production Growth Targets

The company aims for over 30% production growth by 2027 compared to 2024 levels, driven by strategic project completions. This is a key element of the Santos Company growth strategy.

Sustainability Messaging

Decarbonization, particularly the Moomba CCS project, is a central theme. The project's progress is used to highlight the company's commitment to climate transition action.

Financial Discipline Emphasis

Communication emphasizes financial discipline and shareholder returns, with a target of distributing at least 60% of all-in free cash flow from 2026.

Target Audience Engagement

Campaigns are tailored for financial markets and key industrial customers, utilizing investor briefings and media releases to convey strategic progress and financial health.

Emissions Reduction Communication

Progress on CCS projects is a critical part of the messaging, demonstrating the company's approach to meeting emissions reduction targets and reinforcing its competitive advantage.

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