Australia’s oil and gas company Santos has announced company records for sales revenue in both the quarter ($1.1 billion) and the full year ($4 billion), saying the results reflect the rise of production from the PNG LNG project in Papua New Guinea as well as higher Cooper Basin production in Australia
Fourth quarter production of 15.1 mmboe – 15% higher than the corresponding quarter – brought full-year production to 54.1 mmboe. This was a 6 per cent increase on the previous year and within the company’s guidance range of 53-55 mmboe.
“Notwithstanding the fall in oil prices, Santos has delivered growth in full-year and quarterly production, and record sales revenue,” Santos Managing Director and Chief Executive Officer David Knox said.
“These results affirm the strength of Santos’ underlying business, the transformation of our operations and the positioning of the company as a major player in the Asian LNG market.”
“We look forward to further growth in 2015 with the start-up of GLNG in the second half of this year.”
“Commissioning of the GLNG LNG plant is well underway, with firing of the first gas turbine generator expected in the coming weeks. GLNG is more than 90% complete and it remains on time and on budget,” Knox said.
Gas struck offshore Australia
Santos also reported that the Barossa-3 appraisal well had intersected a gross gas bearing interval of 152 metres and provides significant upside to the resource position for the Barossa gas field, offshore Northern Territory.
The company has said that the Barossa-3 result strengthens Santos’ resource position in the Bonaparte Basin and means the Barossa gas field is well positioned to supply gas for either back-fill or expansion at Darwin LNG.
Gas sales higher
Sales gas, ethane and gas to LNG production of 66.3 petajoules for the quarter was 25% higher than the corresponding quarter, reflecting a full quarter of PNG LNG production from both trains and higher gas production from the Cooper Basin. Total sales gas, ethane and LNG sales revenues jumped 79% to $557 million for the quarter.
Quarterly crude oil production of 2.6 million barrels was 8% higher than the previous quarter, primarily due to higher production from Mutineer-Exeter/Fletcher Finucane, offshore Australia . The average oil price for the quarter was A$92 per barrel, 20% lower than the previous quarter, reflecting lower global oil prices partially offset by a weaker Australian dollar. Total crude oil sales revenues of $385 million for the quarter were 18% lower than the previous quarter reflecting lower oil prices.