Oil production was 2% higher than the corresponding period, mainly due to better performance from assets in Western Australia partially offset by lower Indonesian oil production due to natural field decline at Oyong.
Stronger gas prices offset lower international oil prices
First quarter 2009 average portfolio gas price of $4.50 per gigajoule was 13% higher than the March quarter of 2008 primarily due to higher LNG prices.
First quarter 2009 average realized oil price of AUD71.16 per barrel was 33% lower than a year earlier due to lower international oil prices offset by a weaker A$/US$ exchange rate.
Sales revenue was 15% lower than the March 2008 quarter primarily due to lower oil prices partially offset by higher gas sales revenue.
Key activities during the period
Submission of a draft Environmental Impact Statement for the GLNG project
Around $585 million Sino Iron gas sales contract signed enabling restart of the Reindeer gas project in Western Australia.
Gas discovery with the Peluang-1 well adjacent to the Maleo production facilities in Indonesia
Santos Chief Executive Officer David Knox said the key milestone for the quarter was the lodgement of a draft Environmental Impact Statement for GLNG, confirming Santos’ leadership position amongst the integrated coal seam gas to LNG projects at Gladstone.
“We remain focussed on delivering the base business, targeting significant growth through our LNG projects and focussed opportunities in Asia, whilst at the same time ensuring very tight cost control across the company,” Knox said.
