Santos’ sales rise on record production

Australia’s Santos informed on Friday its first quarter sales volumes rose 25 percent to 19.6 mmboe from 15.7 mmboe in the corresponding quarter 2015.

Quarterly production was also up on the second quarter of 2015, rising 8 percent from 14.3 mmboe to 15.5 mmboe the company said in its quarterly report.

Although the production and sales in the second quarter dropped slightly compared to the first quarter 2016, the company reached a record first half production of 31.1 mmboe, up 10 percent on the prior half-year. Sales jumped 32 percent from 30.9 mmboe in the first six months of 2015 to 40.9 mmboe in the first half of 2016.

The company’s sales revenue dropped 3 percent to US$590 million due to a 29 percent decrease in the average realized oil price, which was at $43 per barrel for the first half.

Capital expenditure was slashed by 51 percent for the second quarter reaching $133 million, and 58 percent for the first half, reaching $283 million compared to the corresponding period last year.

LNG projects

Santos revealed in its report that the Santos GLNG plant produced 1 million tons of LNG during the quarter, shipping 16 cargoes. In total, the plant on Curtis Island  shipped 39 cargoes since its start-up in September 2015.

Production at the plant’s second liquefaction train started in May.

The Papua New Guinea LNG plant, in which Santos has a 13.5 percent equity interest, produced 1.8 million tons of LNG shipping 25 cargoes during the second quarter.

The ConocoPhillips-operated Darwin LNG plant, where Santos holds an 11.5 percent stake, dispatched 16 LNG cargoes.

LNG World News Staff