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Santos set for revenue boost as Exxon Mobil gas project nears

<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Australia&#39;s Santos Ltd expects a sharp boost in production and cash flow in the second half of 2014 as liquefied natural gas begins flowing from the Papua New Guinea gas project it has a stake in. Santos, Australia&#39;s second-biggest oil and gas producer, on Thursday posted record sales revenue of A$1.1 billion for the fourth quarter of 2013 - driven by its highest oil production in six years.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Strong oil prices and higher third-party sales volumes, also played a role in boosting sales, the company said. Santos has a 13.5 percent interest in the $19 billion PNG liquefied natural gas (LNG) project, which it said was over 90 percent complete. The project is operated by Exxon Mobil . Santos is also developing the Gladstone LNG project in Queensland state, one of seven under construction in Australia to meet demand for gas in Asia.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">That project is on track to start in 2015, it said. &quot;In the second half of 2014 the first of these projects, PNG LNG, is on track to commence LNG shipments to Asia, delivering a significant boost in production and cashflow for the company,&quot; Chief Executive Officer David Knox said.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">For calendar 2013, Santos said it produced 51 million barrels of oil equivalent (mmboe), down 2 percent from 2012, and in line with guidance issued in December. This was a revision from an October forecast that it would produce at the low end of a 52 million to 55 mmboe range.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>