The Santos Ltd (ASX: STO) share price is sliding despite claims the company's potential merger with Oil Search Ltd (ASX: OSH) will help it chase more clean energy projects.
Santos' CEO Kevin Gallagher, reportedly spoke of the company's plans to clean up emissions at a networking event last night.
Right now, the Santos share price is $6.14, 0.32% lower than its previous close.
Let's take a closer look at today's reports of the oil and gas producer.
Image source: Getty Images
Could the Santos-Oil Search merger be an environmental win?
The Santos share price is slipping today despite its CEO reportedly outlining the company's emission reduction plans.
According to reporting by the Australian Financial Review (AFR), Gallagher stated the company's planned growth will be significantly extended if the merger goes ahead due to an increase in cash flow.
The extra cash will, supposedly, allow Santos to transition towards carbon capture and storage and hydrogen initiatives sooner.
Santos is working to create a carbon capture and storage project in South Australia's Moomba.
According to the AFR, Gallagher stated that the company's looking at potentially creating another carbon capture and storage project near Darwin.
Additionally, Santos is reportedly considering using direct air carbon capture technology to inject carbon underground.
Gallagher supposedly said Santos will spend "a few billion dollars to say the least" to get its carbon sequestration projects underway.
He also reportedly stated Santos has the cash flow to support the project until the middle of the decade. However, by merging with Oil Search it could afford to keep sequestering carbon until 2030.
The merger still needs to receive approval from shareholders and, reportedly, from Papua New Guinea's government before it can go ahead.
Santos share price snapshot
The Santos share price has been performing poorly lately.
It is currently 4.6% lower than it was at the start of 2021. However, it has gained 14.5% since this time last year.
