Sales revenue for the period reached $A739 million, 18% higher than the corresponding period in 2011 but 2% less than the first quarter of 2012.

Production for the quarter rose 9% on the corresponding period to 13 million barrels of oil equivalent.

Quarterly crude oil production totalled 2.4MMbbl, the highest in four years and 46% above the corresponding period, due to production from Chin Sao in Vietnam and higher Cooper Basin oil production.

Production from the Cooper Basin reached 810,000bbl, the highest since 2009.

Gas production of 55 petajoules was 4% more than the same time last year due to production from new assets in Western Australia, partially offset by the planned shutdown of Darwin LNG during the quarter.

“Higher production including our best quarterly oil output in four years, combined with strong oil and gas prices, has delivered solid quarterly result, setting a strong foundation for the second half of 2012,” Santos chief executive officer David Knox said.

The average realised oil price for the quarter was $US116.56 per barrel while the average price of gas was $A4.83 per gigajoule.

During the quarter, Santos and its Block 12W Vietnamese joint venture sanctioned the Dua field for development. Santos’ share of Dua field capital expenditure is estimated at $US100 million.

The field is 17km from the Chim Sao FPSO and will be developed as a subsea tie-back to the existing Chim Sao facilities, subject to Vietnamese government approval.

First oil is expected in the first half of 2014 at an estimated rate of 8000-10,000 barrels per day during the first 12 months of production.

Meanwhile, Santos said the PNG LNG and GLNG projects remained on track for first LNG in 2014 and 2015, respectively, while it also maintained the 2012 production guidance of 55-55MMboe.

This article first appeared in ILN's sister publication EnergyNewsBulletin.net.