Production up 9% on previous quarter; flood recovery continues
- All Cooper Basin drilling rigs are back to full operation, although wet weather and floods continue to affect activities and production.
- Natural gas, ethane and LNG production of 58 PJ was down 6% on the corresponding quarter due to continued Cooper Basin interruptions, partially offset by stronger Indonesian and Fairview production.
- Crude oil production was 7% lower than the second quarter 2010 primarily due to well work over activity at Stag.
- 2010 production guidance of 49 to 52 mmboe is maintained.
Key activities during the period
- Total bought a 20% stake in the GLNG project – 15% from Santos for A$650 million and 5% from PETRONAS. FIRB approval has been obtained by Total for the acquisition of its interest in the GLNG project.
- GLNG secures 5 million tonnes per annum of binding offtake with PETRONAS and Total.
- Significant progress on Santos’ GLNG funding plan with the execution of a A$2 billion bilateral bank loan facility and A$1.4 billion hybrid with 100% equity credit from Standard & Poor’s.
- Halyard gas field offshore Western Australia approved for development.
Santos Chief Executive Officer David Knox said bringing Total into GLNG was another significant milestone for the project.
“The GLNG project continued to make solid progress in the third quarter. We brought Total on board and secured 5 million tonnes per annum of binding offtake agreements that will underpin the development of two trains. We’re very pleased to welcome Total and their substantial technical and management expertise on major LNG projects.”
“GLNG continues to progress discussions with a number of Asian LNG buyers in relation to further potential LNG sales and equity in the project.”
Mr Knox said that the wet weather in the Cooper Basin continued to affect production and provide a number of operational challenges.
“Although production in the Cooper has been affected by the elements, we’re continuing to see stronger production from Indonesia and the Fairview field in eastern Queensland, which is pleasing.”