Santos Sees Production Surge on Quadrant Acquisition

Thursday, January 24, 2019

Santos Ltd, Australia's No. 2 independent gas producer, on Thursday said it expects 2019 production to rise by up to 32 percent boosted by the acquisition of Quadrant assets.

The company expects to churn out 71 million to 78 million barrels of oil equivalent (mmboe) in 2019, Santos said in a statement.

UBS estimates 2019 production to be 73.7 mmboe.

The company posted annual production of 58.9 mmboe, beating its production guidance of 56 mmboe to 58 mmboe and in line with a Macquarie estimate.

The Quadrant buyout coupled with higher realized prices for its oil and gas propelled Santos' fourth quarter revenue 22 percent higher to a record $1.04 billion.

The Adelaide-based firm said production for the quarter ended Dec. 31 jumped to 15.9 mmboe from 15 mmboe a year ago.

Firm LNG prices, coupled with sharp cost cuts and asset sales enabled Santos to achieve its debt target over a year ahead of plan in October 2018.

By slashing debt, Santos set itself up to stave off takeover offers, revive its dividend and hunt for assets to expand its portfolio. It acquired Quadrant for more than $2 billion last year, boosting production and giving it a stake in a promising oil find off Western Australia.

However, the acquisition of Quadrant, which was funded through a combination of company's cash and new debt pushed Santos' debt as at Dec. 31, 2018 to $3.6 billion.


(Reporting by Aditya Soni in Bengaluru Editing by Tom Brown)

Categories: Finance LNG Mergers & Acquisitions Oil Production Asia Natural Gas Australia/NZ

Related Stories

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CNOOC Puts Into Production New Oil Field in South China Sea

Petrovietnam, Petronas Extend PSC for Offshore Block

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

CNOOC Starts Production at Two New Oil and Gas Projects

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

Santos Hires Weststar-GAP for Timor-Leste Offshore Helicopter Services

Current News

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com