Santos announced higher second quarter production and higher sales volumes, as well as significant reductions to both capital and operating expenditure.
Second quarter production of 14.3 million barrels of oil equivalent (mmboe) and sales volumes of 15.7 mmboe were 12% and 4% higher than the corresponding quarter.
Sales revenue fell 19% on the corresponding quarter, affected by the lower realised oil price, partially offset by higher domestic gas prices and a weaker Australian dollar.
Santos Managing Director and Chief Executive Officer David Knox said he was pleased with the production growth and the progress the company had made on taking costs out of the business.
“Santos is taking positive steps to strengthen the company’s operating position in the lower oil price environment. Year to date capital expenditure is 53% below 2014 levels and our production costs for the first half are tracking below guidance at A$14.0 per boe,” Mr Knox said.
“Our flagship GLNG project is progressing well as we move toward first LNG around the end of the third quarter. All upstream facilities are commissioned and fully operational, and we are making excellent progress on Curtis Island.”