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.