Santos revenue slips, key oil field facility undergoes repairs
BY ROSS KELLY
SYDNEY -- Santos reported a 5% fall in Q1 revenue after production was hampered by outages including planned maintenance work on a floating oil production vessel offshore Western Australia state.
Total oil and gas production slipped 2% to 12.1 MMboe after the Mutineer Exeter floating production, storage and offloading vessel was docked for maintenance. The work contributed to a 19% fall in oil production during the quarter.
Santos said revenue was also hurt by lower third party natural gas sales. Third party gas is sourced from rival producers then sold to customers by Santos. The fall could partly be pinned on trouble at supplier Nexus Energy Longtom project offshore Victoria state, which has been plagued by technical glitches.
Australian east coast natural gas prices are being driven higher ahead of a spike in demand expected from three giant gas export projects in Queensland state due to go live from 2015.
Santos said the $18.5 billion GLNG project is more than 50% complete and remains on track to ship its first cargo in 2015. The $19 billion PNG LNG project in Papua New Guinea, operated by ExxonMobil and which counts Santos as a minority shareholder, if over 80% complete.
Santos maintained its annual output guidance of 53 to 57 MMboe.
Dow Jones Newswires