Australian LNG player, Santos, reported upgraded its guidance figures for 2017 on the back of an increase in production during the third quarter.
Santos has upgraded its production and sales volume guidance for 2017 to 58-60 mmboe and 79-82 mmboe, respectively, as production reached 15 mmboe while the sales volumes were at 21.5 mmboe.
Santos managing director and CEO Kevin Gallagher noted that the production during the third quarter rose 2 percent from the second quarter in 2017, driven by a 4 percent increase from the five core assets, primarily due to higher production from the Cooper Basin, Queensland, PNG and WA Gas assets.
“Sales volumes were in-line with the previous quarter while sales revenues were up 3 percent to US$793 million, primarily due to higher LNG, condensate and LPG prices,” Gallagher said.
Compared to the end of 2016, Santos net debt position is US$700 million lower at US$2.8 billion and the company’s forecast free cash flow breakeven for 2017 sits at US$33 per barrel, well below the US$47 per barrel at the beginning of 2016.
Gallagher added that drilling activity was increased in both the Cooper Basin and GLNG, with 16 Cooper and 53 GLNG wells drilled in the quarter.
Santos further said in its report that the GLNG plant shipped one cargo less compared to the previous quarter, dispatching 20 LNG carriers. Year to date, the plant shipped 62 cargoes, compared to 53 cargoes dispatched during the corresponding period in 2016.
The facility’s LNG train 2 statutory shutdown was completed in June and the LNG train 1 shutdown was completed in July.
Darwin LNG sales volumes and production were lower than the previous quarter in-line with the delivery schedule of 11 LNG cargoes for the quarter, one less than in the previous quarter. So far this year the Darwin LNG plant shipped 37 cargoes compared to 43 cargoes during the same period in 2016.