SANTOS has maintained its full-year production guidance of 52-57 million barrels of oil equivalent after posting an increase in output and sales revenue for the March quarter.

In its quarterly report released in April, the Australian-listed company produced 12.1mmboe, a 1 per cent jump year-on-year.

However the figure represented a 13.1% drop on the last quarter’s production of 13.1mmboe as higher oil production thanks to the start-up of Fletcher Finucane last year offset by lower Western Australian gas production.

First quarter revenue of $913 million, down 14 per cent on the previous quarter but marked a 25% jump on 2013 Q1 revenue, primarily due to higher third-party crude oil sales.

Gas production of 8.7 mmboe was 4% lower than the corresponding quarter, with higher production from Darwin LNG and the Cooper Basin offset by lower production from the Carnarvon Basin due to lower customer nominations.

The average gas price of $5.66/GJ for the March quarter was 4% higher than the corresponding quarter.

Quarterly crude oil production of 2.5 million barrels was 15% lower than the previous quarter, with higher production from Chim Sáo offset by lower production from Fletcher Finucane and the Cooper Basin. The average oil price for the quarter was A$128 per barrel.

Santos managing director and chief executive David Knox said the first quarter of 2014 saw the company build momentum for strong project delivery in the year ahead.

“The PNG LNG project is progressing ahead of schedule, with first LNG cargo expected for the middle of this year,” he said.

“The project is currently over 95% complete with first production of condensate from the Hides fields commencing in late March.”

Closer to home, the company’s GLNG project in Queensland continued to make good progress, remaining on budget and on track for first LNG in 2015.

“During the quarter, we also delivered the Peluang project in Indonesia ahead of schedule and on budget,” Mr Knox said.