PNG LNG Project Start-up Boost Santos' 2Q Revenue by 22% to $911M

Santos Ltd.'s second quarter revenue rose 22 percent over the previous year to $911 million (AUD 974 million), lifted by an earlier than scheduled start-up of the Papua New Guinea (PNG) liquefied natural gas (LNG) project in April, the Australia-based firm said Friday.

Production increased 3 percent in the quarter that ended June 30 to 12.8 million barrels of oil equivalent (MMboe), up from 12.4 MMboe a year ago, while sales volume rose 5 percent to 15.1 MMboe from last year's 14.4 percent.

The successful start-up of the PNG LNG project, which shipped seven LNG cargoes by June 30, had provided a boost to the second quarter result and built momentum for a stronger second half.

“Delivery of the PNG LNG project is an important milestone for Santos in our journey to becoming a major LNG supplier to Asia. This project will significantly lift Santos’ LNG production once the project reaches full output, and we are already seeing the contribution it is making,” Santos Managing Director and CEO David Knox said in a press release.

Meanwhile, the Gladstone LNG (GLNG) project in Queensland, Australia had recently celebrated many construction milestones, including the handover for commissioning of the first upstream gas hub, completion of the final weld on the gas transmission pipeline, placement of the final train 1 module and the completion of hydro-testing of the first LNG tank.

“GLNG continues to make good progress, it remains on budget and we are on track to deliver first LNG in 2015,” Knox added.

Elsewhere in Southeast Asia, first oil commenced from the Dua development offshore Vietnam in early July. Santos has a 31.875 percent interest in the project, while field operator Premier Oil and PetroVietnam are the other partners.

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