Australia's Santos reduces production guidance

Source:Xinhua Published: 2013-7-19 10:44:16

Australia's leading oil and gas producer Santos on Friday reported a two percent rise in production to 12.4 million barrels of oil equivalent (mmboe) in the second quarter.

In its second quarter activities report released on Friday, Santos said sales revenue for the June quarter was 797 million AU dollars ($731 million), up 8 percent from the previous quarter.

But the company has reduced its 2013 production outlook by 3 percent to 52 to 55 mmboe from the previous 53 to 57 mmboe.

Santos said the revision was primarily due to deferred oil and gas production from the Chim Sao oil field in Vietnam because of problems with its offshore production and shipping facility.

Other factors contributing to the cut included natural field decline in Sangu, off Bangladesh, and deferred oil production in Carnarvon Basin in Western Australia due to poor weather.

Santos Chief Executive David Knox said the company continued to achieve progress on its several major projects.

He said construction of its Gladstone liquefied natural gas ( GLNG) plant was now over 60 percent complete, while its Papua New Guinea (PNG) project was on track to deliver its first cargo of LNG in 2014.

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