Why the Santos (ASX:STO) share price is dropping lower

The Santos Ltd (ASX: STO) share price is dropping lower this morning after softening oil prices offset the release of a positive announcement.

In morning trade the energy producer’s shares are down 2% to $6.31.

What did Santos announce?

This morning Santos provided the market with an update on its Bayu-Undan Joint Venture.

According to the release, the company has made a final investment decision and will push ahead with the US$235 million Phase 3C infill drilling program at the Bayu-Undan field in the Timor Sea, offshore Timor-Leste.

The program comprises three production wells (two platform and one subsea) and will develop additional natural gas and liquids reserves. This will extend field life and production from the offshore…