Santos has announced company records for sales revenue in both 4Q14 ($1.1 billion) and the full year 2014.
These record revenues reflect the successful ramp-up of production from the Papua New Guinea LNG (PNG LNG) project, as well as increased production from Australia’s Cooper Basin.
Fourth quarter production of 15.1 million boe - 15% higher than the corresponding quarter - brought full-year production to 54.1 million boe, a 6% increase on the previous year and within the company’s guidance range.
Record sales revenue
Commenting on the results, Santos CEO, David Knox, said: “Notwithstanding the fall in oil prices, Santos has delivered growth in full-year and quarterly production, and record sales revenue.
“These results affirm the strength of Santos’ underlying business, the transformation of our operations and the positioning of the company as a major player in the Asian LNG market. We look forward to further growth in 2015 with the start-up of GLNG in the second half of this year.
“Commissioning of the GLNG LNG plant is well underway, with firing of the first gas turbine generator expected in the coming weeks. GLNG is more than 90% complete and it remains on time and on budget.”
Santos also reported that the Barossa-3 appraisal well had intersected a gross gas-bearing interval of 152 m and provides significant upside to the resource position for the Barossa gas field, offshore Northern Territory. The Barossa-3 result means the gas field is well positioned to supply gas for either back-fill or expansion at Darwin LNG.
Sales gas, ethane and gas to LNG production of 66.3 PJ for the quarter was 25% higher than the corresponding quarter, reflecting a full quarter of PNG LNG production from both trains and higher gas production from the Cooper Basin. Total sales gas, ethane and LNG sales revenues were up 79% at $557 million for 4Q14.
Gross gas production for 4Q14 was 108.6 PJ, measured at the inlet of the LNG plant. 25 LNG cargoes were shipped during the quarter, with a total of 55 cargoes shipped in 2014.
On 19 January 2015, the PNG LNG project operator announced that the project’s 120-day operational test period for the LNG facilities had been successfully completed.
Following the restart of production in early October, after the planned shutdown at Bayu-Undan and Darwin LNG, gross gas production was 53.1 PJ. 14 LNG cargoes were shipped during the quarter.
Sales gas production was 1.7 PJ at the GLNG project, down from the corresponding quarter in 2013 due to lower domestic gas nominations. The Fairview field was produced to meet domestic nominations with the remaining production injected into storage. First gas from Fairview was introduced into the GLNG gas transmission pipeline in early October.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/23012015/santos-breaks-gas-sales-records-101/