Santos reports 13% drop in sales revenue in Q1

Australian energy producer Santos on April 20 reported a 13.3% year/year drop in sales revenue in Q1 owing to lower production, sales volume and realised oil price.

The company’s revenue during the quarter was $1.63bn compared with $1.88bn in the same period last year. Total production during Q1 was 22.2mn barrels of oil equivalent, down from 26mn boe last year.

Santos’ average realised oil price was $87.59/b, down from $113.09/b in the corresponding period of last year. Santos said sales volume was 23.8mn boe versus 28.1mn boe in the same quarter of last year.

The company maintained its 2023 guidance. It expects production to be in the range of 89mn boe-96mn boe and sales volumes of 90mn boe-100mn boe. 

Santos said it continues to refine an integrated development concept for the Dorado offshore project, focusing on integrating the Pavo discovery and phase 2 via Varanus Island. Santos received regulatory approval for its Dorado oil and gas project offshore Western Australia in February this year. 

The Dorado and Pavo fields combined are estimated to contain gross 2C contingent resources of 189mn barrels of liquids and 401 petajoules of gas. Santos’ share is about 147mn barrels and 320 petajoules, respectively. Dorado is an integrated oil and gas project which is planned to be developed in two phases. Phase one development involves the production of oil and condensate through a wellhead platform and an FPSO. 

Santos has an 80% interest in Dorado and a 70% interest in Pavo and operates both fields. The remaining interests are held by Carnarvon Energy.

The Moomba CCS project is 60% complete and on schedule for the first CO2 injection in 2024, Santos said. The FEED work scope is complete for the Bayu-Undan CCS project including the design of the offshore platform topsides CCS equipment, the company added.