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Santos struggles with record breaker from GLNG train two

by declan.cooley
28th Jul 2016 5:00 AM | Updated: 7:00 AM

TOUGH times continue at Santos with not even a record breaking level of production courtesy of GLNG's second train coming online offsetting the impact of plunging global oil and gas prices.

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Santos share prices closed yesterday at $4.56, which is down from a year ago when its shares were worth $7.13

Two years ago Santos' share price was sitting pretty at $14.83.

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Aerial view of the Cool Voyager LNG ship at the Santos GLNG project on Curtis Island, near Gladstone in Queensland, Australia. The first of two GLNG production trains was handed over to the customer, Santos, in October 2015. The GLNG project is one of three plants built by Bechtel on Curtis Island, near Gladstone in Queensland, Australia. The projects, QCLNG, GLNG and Australia Pacific LNG (APLNG) will have a capacity to produce 25 million tonnes of LNG per annum when complete in 2016.
Aerial view of the Cool Voyager LNG ship at the Santos GLNG project on Curtis Island, near Gladstone in Queensland, Australia. The first of two GLNG production trains was handed over to the customer, Santos, in October 2015. The GLNG project is one of three plants built by Bechtel on Curtis Island, near Gladstone in Queensland, Australia. The projects, QCLNG, GLNG and Australia Pacific LNG (APLNG) will have a capacity to produce 25 million tonnes of LNG per annum when complete in 2016. Ashley Roach - Fullframe Photogr

But with the appointment of new CEO, Kevin Gallagher, Santos is looking to cut costs to hit a break-even cost of $US35 and $US40 a barrel.

Last week Santos released its half yearly report, which showed production was 10% higher than a year ago at 31.1 million barrels of oil.

The only problem was the average oil price decreased by 29% to $US43 a barrel for the first half of the year.

"There is a lot of work ahead of us but today's results show we are heading in the right direction," Mr Gallagher said.

GLNG train two came online in May and produced 1 million tonnes of LNG in the second quarter and shipped 16 cargoes.

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