Oil and Gas News

Santos oil production drops

Santos has outlined in its second quarterly report that the company’s oil production was down, as predicted, compared to the first quarter.

Santos’ oil production was 25.5 million barrels of oil equivalent (mmboe) in the second quarter of this year. While this was down on the first quarter – 26 mmboe – a slight drop was expected.

The primary cause was the natural field decline at Bayu-Undan impacting production, as well as a number of major planned maintenance outages across PNG and Darwin LNG and the Cooper Basin.

The Barossa project is 40 per cent complete, while the Moomba carbon capture and storage (CCS) is 18 per cent complete. Both project are currently on schedule and on budget.

Work on the Bayu-Undan CCS has progressed. Front end engineering design packages were awarded during the quarter.

Santos managing director and CEO Kevin Gallagher says that the company delivered record production for the first half of the year. This strong performance occurred despite a number of planned shutdowns.

To meet increasing global demand for natural gas, Santos has committed to adding a fifth drilling rig to its existing facilities in the Cooper Basin.

“Santos is positioned as a leading and reliable LNG supplier into Asia and we are well placed to take advantage of growing Asian demand for LNG, which is forecast to double by 2050,” Gallagher said.

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