Quarterly production summary
- June quarter production of 13.4 mmboe was 2% higher than the March 2009 quarter, primarily due to higher Cooper Basin natural gas production.
- Crude oil production in the June quarter was lower than both comparison periods, primarily due to the planned maintenance shutdown of the Mutineer Exeter FPSO in April and May 2009.
- June quarter production was 4% lower than the June 2008 quarter primarily due to the sale of 40% of GLNG® to PETRONAS effective August 2008 combined with natural field decline and the Mutineer Exeter shutdown in 2009, partially offset by higher gas production from John Brookes, Maleo and Casino. S
- Sales revenue impacted by lower international oil prices June quarter average realised oil price of A$75.66 per barrel was 43% lower than a year earlier due to lower international oil prices partially offset by a weaker A$/US$ exchange rate.
- June quarter average portfolio gas price of $3.90 per gigajoule was 3% lower than the corresponding period primarily due to lower prices for oil price linked gas sales contracts.
Key activities during the period
- GLNG® signed a binding Heads of Agreement to sell 2 million tonnes per annum (mtpa) of liquefied natural gas to PETRONAS with a sellers’ option for an additional 1mtpa.
- GLNG® Environmental Impact Statement released for public comment.
- Award of GLNG® upstream FEED contracts to Fluor and Foster Wheeler.
- The PNG LNG Project reached alignment on commercial terms with three major LNG buyers in Asia for sales of 4.3mtpa of LNG. A fourth LNG buyer is awaiting Government approval of key commercial terms for a non-binding Heads of Agreement for the remaining 2mtpa of production capacity. These arrangements take the total LNG volumes covered by commercial terms to the full 6.3mtpa initial production capacity.
- Successful $3 billion equity raising.
- The acquisition of significant additional acreage in the Gunnedah Basin in northern New South Wales and an investment in leading local coal seam gas company Eastern Star Gas Limited.
- Sale of interest in PRL 5 in Papua New Guinea for US$20 million.
Santos Chief Executive Officer David Knox said a number of significant milestones in the company’s growth strategy were delivered in the quarter.
“The successful marketing outcomes for both PNG LNG and GLNG® demonstrate that both projects are on track for final investment decisions by the end of 2009 and the first half of 2010 respectively.”
“The release of the GLNG® Environmental Impact Statement for public comment and the award of dual upstream FEED contracts further confirms Santos’ leadership position amongst the integrated coal seam gas to LNG projects at Gladstone.
“We were also delighted by the strong support that our institutional and retail shareholders demonstrated for Santos through the equity raising.”
“Looking forward, we remain focussed on delivering the base business and targeting significant growth through our LNG projects and focussed opportunities in Asia,” Mr Knox said.
