INCREASING production from the PNG-LNG project has helped Santos to record its highest quarterly production in seven years.
Santos managing director and chief executive David Knox said the successful acceleration of the PNG LNG project had driven the company’s highest quarterly production result since 2007.
The company announced in October production of 14 million barrels of oil equivalent (mmboe) for the September quarter – up nine per cent on the June period.
Sales revenue was A$1.06 billion for the quarter and A$2.95 billion for the year, increases of 9% and 16% respectively.
Production on the project reached capacity in late July and 23 cargoes were shipped during the September quarter.
Eight Hides development wells were driled during the quarter and the company said work was underway to re-define the Hides reservoir model using the results from the wells.
The Hides F1 (Hides Deep) exploration well in PDL-1 was spudded in early October and drilling is ongoing.
“This well will test the Koi Iange Formation below the existing production at the Toro reservoir interval,” Santos said.
The Hides G1 and G2 wells, now cased and suspended, were spudded in the first quarter of this year.
The company said it was also continuing to interpret data from the successful NW Koko-1 and Manta-1 wells in PPL 261 and PPL 426.
The successful ramp-up of PNG LNG was reflected in the production of sales gas, ethane and LNG, with the company producing 60.4 petajoules for the quarter and reporting revenues of $483 million from the division.
Gross gas production at the facility during the third quarter was 92.3 petajouls (PJs), of which Santos’ share was 12.5 PJs.
Gross condensate production for the quarter was 2.56 million barrels, of which Santos’ share was 347,500 barrels.