PNG LNG boosts Santos revenue
Santos of Australia reported higher second quarter production and a significant jump in sales revenue following the successful start-up of the PNG LNG project, which commenced production in April of this year ahead of schedule.
The quarter’s production of 12.8 mmboe was an increase of 5% compared to the previous quarter and an increase of 3% compared to the second quarter of 2013. Sales revenue of $974 million for the quarter and $1,887 for the first-half increased by 22% and 25% respectively compared to 2013.
Santos Managing Director and Chief Executive Officer David Knox said that the successful start-up of the PNG LNG project, which shipped seven LNG cargoes by the end of the quarter, had driven the sound second quarter result and built momentum for a stronger second half.
“Delivery of the PNG LNG project is an important milestone for Santos in our journey to becoming a major LNG supplier to Asia. This project will significantly lift Santos’ LNG production once the project reaches full output, and we are already seeing the contribution it is making.”
Santos also said that the GLNG project in Australia had recently celebrated many construction milestones, including the handover for commissioning of the first upstream gas hub, completion of the final weld on the gas transmission pipeline, placement of the final train 1 module and the completion of hydro-testing of the first LNG tank.
“GLNG continues to make good progress, it remains on budget and we are on track to deliver first LNG in 2015,” Knox added.