Production for the three months to June 30 rose to 18.6 million barrels of oil equivalent (mmboe) from 14.2 mmboe last year, Australia’s No 2 independent gas producer said on Thursday.
The figure was higher than a Citi estimate of 17.78 mmboe.
The Adelaide-based company, however, slightly trimmed the upper end of its 2019 sales and production forecast, while raising the lower end.
Santos now expects annual sales of 90-97 mmboe and production of 73-77 mmboe.
Liquefied natural gas prices have come under pressure after a mild winter in the northern hemisphere.
Sales for the period declined slightly from the first quarter, bringing in revenue of $959 million.
Santos also realised lower prices over the quarter.
The company said it expected to book a “significant” resource upgrade on its Dorado project in Western Australia.
Dorado has been touted as having much potential for the company.
The company’s operations in Papua New Guinea may come under regulatory scrutiny after the region’s recently elected prime minister, James Marape, promised reforms to wealth distribution in the resources sector.
Santos had recently bought into an Exxon Mobil Corp-led field in Papua New Guinea that will help feed an expansion of Exxon’s PNG LNG project, which Santos also partially owns.
Santos’ Australia and Papua New Guinea locations help the company sell gas to a number of Asian buyers.
Want to comment?
Send us an email, making it clear which story you’re commenting on and including your full name (required for publication) and phone number (only for verification purposes). Please put “Reader views” in the subject.
We’ll publish the best comments in a regular “Reader Views” post. Your comments can be brief, or we can accept up to 350 words, or thereabouts.
InDaily has changed the way we receive comments. Go here for an explanation.
Local News Matters
Media diversity is under threat in Australia – nowhere more so than in South Australia. The state needs more than one voice to guide it forward and you can help with a donation of any size to InDaily. Your contribution goes directly to helping our journalists uncover the facts. Please click below to help InDaily continue to uncover the facts.