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

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

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

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

CNOOC Puts Into Production New Oil Field in South China Sea

Woodside Inks Long-Term LNG Supply Deal with China Resources

CNOOC Starts Production at Two New Oil and Gas Projects

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Current News

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

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