PERTH (miningweekly.com) – Oil and gas major Santos on Thursday warned that its output for 2013 would be at the lower end of its guidance as production was deferred from both the Chim Sao and Fletcher Finucane operations.

For the full year, Santos was expected to produce between 52-million and 55-million barrels of oil equivalent.

Despite the weaker full year outlook, the ASX-listed miner reported its highest oil production in six years during the three months to September, with crude oil production reaching 2.9-million barrels, up 15% on the previous quarter.

The increase in production was thanks to higher production from Fletcher Finucane and the Cooper basin.

Meanwhile, gas production for the quarter under review reached 55.3 PJ, or some 9.5-million barrels of oil equivalent, which was a 5% decline on the previous corresponding period, as higher production from the Darwin liquefied natural gas (LNG) project was offset by lower production in Bangladesh and the Otway basin.

Sales for the third quarter were also 7% lower than the previous corresponding period, but owing to the strong oil prices, Santos reported record sales revenue.

MD and CEO David Knox said that the record sales revenue of over A$1-billion demonstrated the performance of the existing business, as well as Santos’ efforts to progress the delivery of new projects and to create opportunity for the future.

“Excellent progress continues to be made on our two major growth projects, with Papua New Guinea LNG over 90% complete and Gladstone LNG over 65% complete. Both projects remain on schedule and capital cost estimates remain unchanged,” Knox said.

The Papua New Guinea LNG project was on track to deliver its first gas by the second half of 2014, while Gladstone was sanctioned for first delivery in 2015.

“We also continue to execute our strategy of focused growth in Asia, with the acquisition of an interest in the Ande Ande Lumut oil field offshore of Indonesia and interests in exploration permits in Papua New Guinea,” said Knox.

He noted that the Dua and Peluang development projects were also on track to deliver first oil and gas respectively, in the first half of 2014.