Santos has solid first quarter

SANTOS says production at the PNG LNG project remains steady in the first quarter of this year due to strong production from its fields.
The Australian oil and gas company said LNG production was down on the previous quarter due to a combination of Hides field’s natural decline and annual preventative maintenance undertaken at the central processing facility during the quarter.
From all its global operations, Santos reported a strong cash flow of US$692 million (K2.55 billion) and sales revenue of US$1.4 billion (K5.17 billion) during the quarter.
Santos managing director and chief executive officer Kevin Gallagher said the strong underlying business performance, combined with a disciplined focus on operational excellence, delivered a robust first quarter for 2024.
“The first quarter brought strong free cash flow which provides a solid foundation for the year ahead. It positions us well to fund shareholder returns, backfill and sustain our existing business, complete our major projects and grow our Santos Energy Solutions business,” Gallagher said.
For its country operation, Santos said it has completed drilling at several sites such as Moran and Angore.
According to the company’s quarterly report the drilling of the second Angore well had reached the formation immediately above the target reservoir. “Intermediate casing has been run and operations are under way to prepare to drill the reservoir section, prior to carrying out completion operations for both wells. Production of 350MMscf/d gross is expected to backfill into PNG LNG.”
It also talked about a transaction which Kumul Petroleum Holdings Limited (Kumul) paid US$352 million (about K1.33 billion) to Santos for its 2.6 stake in the PNG LNG project on Jan 31.
Until final completion, Santos will retain control of the entity holding the 2.6 per cent sale interest. Project distributions are being applied to the purchase of the remaining interest. The option for Kumul to purchase the further 2.4 per cent interest has now expired.
Total Energies, operator of the Papua LNG Project, has advised it will need to keep working with contractors to agree commercially-viable EPC contracts to reach an expected FID in 2025.