Santos LNG sales rise, Capex cut

Australia’s Santos informed that its year-to-date LNG sales volumes exceeded 1 million tonnes during the third quarter.

LNG sales volumes have more than doubled in 2015 and growth is expected to continue in the fourth quarter following GLNG shipping its first cargo from Curtis Island, the company said in a statement.

Third quarter production of 14.5 million barrels of oil equivalent (mmboe) was 4% higher than the corresponding quarter and 10% higher in the year-to-date.

Santos Managing Director and Chief Executive Officer David Knox said both PNG LNG and Darwin LNG delivered strong production in the quarter.

During the quarter PNG LNG operated at an annualised rate of approximately 7.4 mtpa, 7% above nameplate capacity of 6.9 mtpa, with 26 LNG cargoes shipped during the third quarter.

15 LNG cargoes were shipped from the Darwin LNG facility during the quarter, Santos revealed in a report.

Knox said the company was continuing with its cost reduction program as, year to date production was up 10% while Capex went down 55% with unit production costs down 15%.

Sales revenue fell 24% with the average realised oil price of A$71 per barrel down 38% compared to the corresponding quarter last year.

Capital expenditure guidance for 2015 has been lowered by a further 10% to $1.8 billion. Production guidance for 2015 is narrowed to 57 to 59 mmboe with all other guidance is maintained.

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LNG World News Staff; Image: Santos GLNG

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