Santos Says LNG Projects on Track

Santos on Thursday announced higher first quarter production and sales revenue, and strong progress on major projects.

Company’s Managing Director and Chief Executive Officer David Knox said that the first quarter of 2014 saw the company build momentum for strong project delivery in the year ahead.

“The PNG LNG project is progressing ahead of schedule, with first LNG cargo expected for the middle of this year. The project is currently over 95% complete with first production of condensate from the Hides fields commencing in late March,” Knox said.

Knox also said that GLNG continues to make good progress and within budget and on track for first LNG in 2015. “The project is now 80% complete, with all train 1 modules delivered to Curtis Island, all mainline pipeline in the ground, the marine crossing tunnel complete and the pipeline installed.”

First quarter production of 12.2 million barrels of oil equivalent (mmboe) was higher than the first quarter of 2013, with higher oil production due to the start-up of Fletcher Finucane in May 2013 offset by lower Western Australian gas production.

Sales revenue of $913 million for the March quarter was 28% higher than the corresponding quarter, primarily due to higher third-party crude oil sales.

Gas production of 50.6 petajoules (8.7 mmboe) was 4% lower than the corresponding quarter, with higher production from Darwin LNG and the Cooper Basin offset by lower production from the Carnarvon Basin due to lower customer nominations. The average gas price of $5.66/GJ for the March quarter was 4% higher than the corresponding quarter.

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