PERTH (miningweekly.com) - Oil and gas major Santos has lifted its yearly output by 10% during the 2012 full year, producing some 52.1-million barrels of oil equivalent.

CEO David Knox said on Thursday that new producing assets such as the Reindeer and Chim Sao projects, combined with strong Cooper oil production, drove the 10% increase.

During the three months to December, production reached 13.2-million barrels of oil equivalent, a 13% increase on the previous corresponding quarter, while sales volumes for the same period were up by 7%, to 15.5-million barrels of oil equivalent.

“Higher oil production allowed us to capitalise on favourable prices this year, delivering the highest sales revenue in the company’s history.”

Yearly sales increased by 14% on the previous year, reaching a record 61-million barrels of oil equivalent and generating a revenue of some $3.2-billion.

Knox noted that Santos had continued to deliver in its base business, as well as laying the foundation for future growth.

“In Western Australia, we sanctioned the Fletcher Finucane oil project and made a material gas discovery at Crown. In the Northern Territory, we farmed-down Caldita Barossa and completed two farm-ins into prospective onshore acreage in the Amadeus/Pedirka and McArthur basins.

“The Cooper basin produced its highest oil output in three years and Australia’s first commercial shale gas, while we advanced plans for the Moomba infrastructure upgrade,” Knox said.

In Asia, Santos’ Chim Sao operation also delivered a significant boost to the company’s oil production, while the Wortel gas project in Indonesia was completed within budget, and the South Sumatra coal-seam-gas opportunity was progressed.

“Construction progress on our liquefied natural gas (LNG) projects is pleasing, with the Papua New Guinea LNG more than 70% complete and the Gladstone LNG 45% complete. These projects remain on track for first LNG in 2014 and 2015 respectively,” Knox said.

Looking ahead, Santos expected 2013 production to be between 53-million barrels and 57-million barrels of oil equivalent, with capital expenditure likely to be some A$4-billion.