Australia's oil and gas firm Santos Ltd. disclosed Wednesday that the company's production in 2014 is expected to reach 52 to 57 million barrels of oil equivalent (MMboe), driven by the start-up of the Papua New Guinea (PNG) liquefied natural gas (LNG) project next year.
Santos's current year production forecast is approximately 51 MMboe, David Knox, CEO and managing director said at an investor seminar, down from the production guidance set by the company in October of 52 to 55 MMboe.
The PNG LNG project is over 90 percent complete and is on track for first gas in 2Q 2014.
Santos' production will be further boosted by first gas from the Peluang project in Indonesia, which is now over 45 percent complete, in the first half of 2014.
The Dua development in Vietnam is also scheduled to commence production, at an average of 8,000 barrels of oil per day (bopd) in the first 12 months, in mid-2014.
Santos, which planned to achieve a production level of 80-90 MMboe in 2020, sets its capital expenditure guidance for 2014 at $3.16 billion (AUD 3.5 billion), compared to 2013's $3.62 billion (AUD 4 billion).
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