Oil and gas producer Santos has committed to a $100 million drilling and appraisal program over the next 12 months in the Northern Territory.

The onshore Mereenie program will target oil while also evaluating natural gas resources.

Santos on Monday said it would consider a further drilling program if the initial appraisals were successful.

Santos has operated Mereenie, 250 kilometres west of Alice Springs in the Amadeus Basin, since 1993.

The field has produced more than 16 million barrels of oil and condensate and over 240 billion cubic feet of gas since 1984.

Santos Mereenie asset manager Mark Buckland said there were enough oil and natural gas reserves to extend the life of the Mereenie field well beyond 2030.

“The safe and sustainable development of this project has the potential to deliver economic benefits through jobs, revenue and royalties for many years,” Mr Buckland said.

The commitment to the Mereenie appraisal and development drilling program is the latest in a recent series of investments by Santos in onshore interests in the Northern Territory.

NT chief Minister Adam Giles said the decision reaffirmed his government’s policy of having no gas reservation targets to encourage investment.

Although rich in natural gas, the NT has struggled to secure adequate supplies to service its own domestic needs, leading to calls for gas companies to reserve some of their finds for the people of the territory.

“What we are doing is sending out the indications and the signals that we are open for business,” Mr Giles said.

“This announcement will see further creation and investment into jobs in the Northern Territory, particularly central Australia,” he told journalists.

In October last year, Santos announced a farm-in agreement with Central Petroleum over 13 permits in the Amadeus and Pedirka Basins.

In December, the company struck a farm-in agreement with Tamboran Resources over four permits in the McArthur Basin.