Oil and Gas News

Santos oil production up in 2016

Santos has closed the first quarter of 2016 with oil production up 11 per cent year on year.

With 15.6 mmboe, the first quarter production is up five per cent on the previous quarter.

Sales volumes are up 40 per cent year on year, taking revenue to $835 million, despite the average price of oil down 28 per cent to US$37 per barrel.

The current price represents a rally back from below US$27 per barrel in January, a 13 year low.

So far this year the GLNG plant has shipped 16 cargoes of gas, from production of 958,000 tonnes of LNG.

Santos CEO Kevin Gallagher said the latest results for 2016 showed solid production and demonstrated the company’s firm commitment to drive down costs and improve efficiency.

“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,” he said.

“We will continue to look for opportunities to lift productivity and reduce costs to drive long-term value for shareholders.”

Santos has assured shareholders that 2016 production guidance of 57-63 mmboe will be maintained.

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