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Santos' Q2 results boosted by PNG LNG milestone

SANTOS is revelling in a jump in production and sales revenue for the second quarter, following t...

Andrew Snelling

Production for the quarter rose 5% from the previous three months to 12.8 million barrels of oil equivalent, generating sales revenue of $974 million.

Crude oil production for the quarter, however, was down 16% on the previous period to 2.1MMbbl due to outages at the company’s Fletcher Finucane and Chim Sao projects, but this figure was partially offset by higher Cooper Basin production.

The PNG LNG project shipped seven cargoes over the quarter, with gross gas production of 50 petajoules (6.7PJ net to Santos) and 1.34MMbbl of condensate (180,500bbl to Santos).

Other milestones for the quarter included the intersection of 92m of net gas pay at the Barossa-2 well and the completion of major construction jobs at the Gladstone LNG project.

Work on delivering the first train for GLNG, which consists of 82 modules, was completed by Bechtel at the beginning of the month and is now installed.

GLNG sales production came to 1.9PJ, a lower result than the corresponding period in 2013 due to lower domestic gas nominations.

The explorer drilled 42 wells in its GLNG acreage, which included 27 development wells and 15 appraisal wells.

It also brought 12 new gas wells online in the Cooper.

Santos had total capital expenditure of $1.05 billion over the quarter.

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