Santos production climbs in Q1

Australia’s LNG player Santos posted first quarter production of 14 million barrels of oil equivalent (mmboe) and sales volumes of 15.2 mmboe, a rise of 15% and 10% as compared to the corresponding quarter.

Santos Managing Director and Chief Executive Officer David Knox said that Santos had delivered a sound start to 2015, including higher production and strong progress on GLNG commissioning, where first LNG is now expected around the end of the third quarter, within the US$18.5 billion budget.

Santos’ sales revenue was 10% lower primarily due to the fall in global oil prices, partially offset by stronger domestic gas prices and a weaker Australian dollar.

Knox said the company had taken prompt and decisive actions to respond to the current low oil price environment.

“First quarter capital expenditure was 40% lower than last year, and we continue to make solid inroads towards reducing production costs per barrel across the business,” Knox said.

Sales gas, ethane and gas to LNG production of 63.2 petajoules for the quarter was 25% higher than the corresponding quarter, reflecting a full quarter of PNG LNG production.

Total sales gas, ethane and LNG sales revenue jumped 78% to $520 million for the quarter.