Record production boosts Santos H1 revenue

Australian LNG player Santos, the operator of the GLNG project posted new record production figures and a rise in sales volumes during the first half of the year. 

The company reported production of 37 mmboe in the first six months of 2019, a record for the company, 32 percent above the figures reported in the corresponding period last year.

Sales volumes of 45.2 mmboe were up 19 percent and sales revenues up 18 percent to $2 billion in the first half, Santos said in its quarterly report on Thursday.

Santos managing director and CEO Kevin Gallagher said that the company expects even stronger production in the second half of the year, as the second quarter production has been impacted by planned maintenance in the Cooper Basin and PNG LNG.

Production in the second quarter reached 18.6 mmboe, 1 percent above the previous quarter, while sales volumes edged 2 percent down on the first quarter reaching 22.4 mmboe.

Second-quarter sales volumes were lower than the prior quarter primarily due to the timing of LNG and liquids shipments. Two PNG LNG cargoes were on the water at the end of the quarter, Santos said.

Same factors impacted the second quarter sales revenues that reached $959 million, down from $1 billion in the first quarter.

Including gas volumes originally slated for export cargoes but diverted to the domestic market by the GLNG partners, first-half LNG-equivalent production was 2.7 million tonnes.

Daily LNG-equivalent run-rates of 6 mtpa were achieved during the first half and GLNG remains on track to deliver an LNG-equivalent run-rate of 6 mtpa by year end, Santos statement reads. A one-month planned statutory shutdown of GLNG train 1 is scheduled for the third quarter.

The company added that 102 wells were drilled across the GLNG acreage in the second quarter, setting a new record for wells drilled in a single quarter across GLNG operations. A total of 189 wells were drilled in the first-half and the drilling pace remains on track to deliver 350-400 wells by year-end.

Santos said that the production guidance is narrowed to 73-77 mmboe from 71-78 mmboe and sales volume guidance to 90-97 mmboe from the initial 88-98 mmboe.