Santos has released its 2016 First Quarter Activities Report.
- First quarter production of 15.6 mmboe was up 11% on the corresponding quarter and 5% higher than the previous quarter.
- Sales volumes were up 40% on the corresponding quarter. First quarter sales revenue was A$835 million.
- The average realised oil price decreased 28% to A$51 (US$37) per barrel.
- First quarter upstream production costs of A$11.90 per barrel, excluding LNG plant costs, were 13% lower than the corresponding quarter.
- First quarter capital expenditure of A$209 million was 59% lower than both the corresponding quarter and the previous quarter.
- GLNG train 1 produced 958,000 tonnes of LNG and shipped 16 cargoes in the quarter. Sales under the long-term contracts with GLNG’s foundation customers commenced at the end of March 2016.
- Kevin Gallagher commenced as Managing Director and Chief Executive Officer on 1 February 2016.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the company’s first quarter results reflect solid production and a firm commitment to drive costs down and improve efficiencies across the business.
“We are focused on developing a business that is self-sustaining in a low oil price environment and well positioned to take full advantage of rising commodity prices in the future.
“We will continue to look for opportunities to lift productivity and reduce costs to drive long-term value for shareholders,” Mr Gallagher said.
2016 production guidance of 57-63 mmboe is maintained.