Santos refutes equity raising reports

Australia’s Santos, operator of the GLNG project, has denied media reports it was planning to launch an equity raising.

The company’s shares dropped¬†9 percent on Friday, amid concerns it would need to raise cash as oil and gas prices show no sign of recovery.

Santos retains ample liquidity, with over $2 billion in cash and undrawn debt facilities currently available,” the company said in a statement.

The company said it continues to take positive steps to strengthen its operating position in the lower oil price environment. First half capital expenditure was more than 50% below 2014 levels

First half capital expenditure was more than 50% below 2014 levels and unit production costs for the first half were 11% lower,” Santos said.

The underlying performance of the business remains strong. Production was up 13% in the first half and continued growth is expected over the next few years, coinciding with the ramp up of GLNG,” it added.

GLNG project

According to Santos, the GLNG project being developed on Curtis Island off Gladstone has made significant progress and remains on track for first LNG around the end of the third quarter.

All upstream facilities are fully operational and good progress is being made on commissioning the LNG plant on Curtis Island, the company said.

The LNG project involves gas field development in the Surat and Bowen Basins, a 420-kilometre gas transmission pipeline, and the construction of a 7.8 mtpa LNG plant on Curtis Island.

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LNG World News Staff; Image: Santos GLNG