Santos Ltd has increased its oil and gas reserves to record volumes, driven by the growth of its liquefied natural gas (LNG) portfolio.
The company says its proved and probable (2P) reserves grew by 42 percent or 427 million barrels of oil equivalent (mmboe) to 1.44 billion barrels last year.
Santos said this was its sixth successive annual reserves increase and excluded its production last year of 54.4 mmboe.
“This significant reserves increase is a result of the consistent delivery of Santos’ transformational LNG growth strategy,” Santos said in a statement on Monday.
“2P reserves dedicated to Santos’ portfolio of LNG projects are now more than 700 mmboe or almost 50 percent of total 2P reserves.”
Santos acquired its first LNG reserves in 2005.
Chief executive David Knox said the reserves increase positioned the company for significant future production growth.
The company said it was ahead of schedule in amassing 2P reserves for its key growth project, Gladstone LNG in Queensland, exceeding requirements for the first processing `train’.
“GLNG project 2P reserves have grown three-fold since 2007,” Santos said.
“Importantly, 95 percent of these reserves are uncontracted and available to the project.”
First LNG from the $7.7 billion Santos-operated project, a joint venture with Malaysia’s national oil company Petronas, is slated for 2014.
A final decision to proceed with the project is expected to be made mid-2010.
Shares in Santos had inched two cents lower to $13.18 by 1405 AEDT.