LNG / CNG | Quarterly / Earnings Reports | Second Quarter (2Q) Update
Santos' PNG LNG Project Spurs Jump in 2Q Revenue
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Santos has reported higher second quarter production and a significant jump in sales revenue following the successful start-up of the PNG LNG project, which commenced production in April of this year ahead of schedule.
The quarter’s production of 12.8 mmboe was an increase of 5% compared to the previous quarter and an increase of 3% compared to the second quarter of 2013. Sales revenue of $974 million for the quarter and $1,887 for the first-half increased by 22% and 25% respectively compared to 2013.
Santos Managing Director and Chief Executive Officer David Knox said that the successful start-up of the PNG LNG project, which shipped seven LNG cargoes by the end of the quarter, had driven the sound second quarter result and built momentum for a stronger second half.
Knox commented: "Delivery of the PNG LNG project is an important milestone for Santos in our journey to becoming a major LNG supplier to Asia. This project will significantly lift Santos’ LNG production once the project reaches full output, and we are already seeing the contribution it is making."
Santos reported that the GLNG project had recently celebrated many construction milestones, including the handover for commissioning of the first upstream gas hub, completion of the final weld on the gas transmission pipeline, placement of the final train 1 module and the completion of hydro-testing of the first LNG tank.
Knox added: "GLNG continues to make good progress, it remains on budget and we are on track to deliver first LNG in 2015."
Key Activities:
- PNG LNG start-up ahead of schedule during the quarter.
- Completion of key construction milestones across the GLNG project, which remains on track for first LNG in 2015.
- The Barossa-2 appraisal well was successfully drilled and intersected 92 metres net gas pay.
- In early July, first oil was achieved from the Dua project in Vietnam.
Sales gas, ethane and gas to LNG production of 55.7 petajoules for the quarter was 8% higher than the corresponding quarter, with higher production from Darwin LNG and start-up at PNG LNG, offset by lower production from the Carnarvon Basin due to lower customer nominations.
Quarterly crude oil production of 2.1 million barrels was 16% lower than the previous quarter, due to outages at Fletcher Finucane and Chim Sáo, partially offset by higher Cooper Basin production. The average oil price for the quarter was A$122 per barrel, 5% lower than the corresponding quarter.
