Beach Energy Ltd's stock soared 5.22% during Monday's intraday trading session following a major joint venture announcement with Santos.

The companies have made a Final Investment Decision (FID) to proceed with the Moomba Central Optimisation (MCO) project in the Cooper Basin, South Australia. Santos will invest approximately $357 million in the project, which is expected to be delivered over three years.

The project is anticipated to generate significant cost savings, targeting over $600 million in capital and operating expenditure savings net to Santos over the field's life. Beach Energy specifically highlighted it is targeting material field operating and sustaining capital savings of over A$400 million net to the company. The initiative also aims to improve the Cooper Basin unit production cost by up to $3 per barrel of oil equivalent by replacing aging infrastructure with a single, more efficient electric-driven compressor station.