AI assistant
SANTOS LIMITED Interim / Quarterly Report 2019
65872_rns_2019-07-17_ef2ecce1-0e57-4e4c-94fa-8144c0a71803.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Second Quarter Activities Report
For period ending 30 June 2019
ASX: STO | ADR: SSLZY
18 July 2019
Record production and revenue
- First half production of 37 mmboe was a record for Santos and 32% above the corresponding period.
- Sales volumes of 45.2 mmboe were up 19% and sales revenues up 18% to $2 billion in the first half.
Major growth projects advanced
- Dorado-2 appraisal success confirmed a larger than anticipated major oil and gas resource in the Bedout Basin, offshore Western Australia, significantly de-risking a future development. Santos now expects to book a significant resource upgrade above its currently booked 2C resource for Dorado.
- PNG LNG expansion advanced by the signing of a binding letter of intent to acquire a 14.3% interest (pregovernment back-in) in PRL 3 which contains the P'nyang natural gas field.
- The Barossa project entered exclusive negotiations with the Darwin LNG Joint Venture for the supply of backfill gas to Darwin LNG and also awarded the subsea production system contract ahead of a planned FID by early 2020.
Onshore growth
- Higher quarterly and year-to-date production in both the Cooper Basin and GLNG.
- A record 102 wells were drilled in GLNG during the quarter (100% success rate) and 25 wells drilled in the Cooper Basin (80% success rate) including fastest ever Cooper total well execution of 4.3 days.
Strong free cash flow
- Santos generated $300 million in free cash flow in the second quarter, bringing total free cash flow for the first half to over $600 million.
- Strong free cash flows reduced net debt by $0.3 billion in the second quarter to $3.1 billion (excluding the impact of the new AASB 16 Leases standard).
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the first half of 2019 had delivered record production volumes and sales revenues, along with strong free cash flow of over $600 million.
"Our disciplined operating model and approach to capital allocation has delivered a strong first half result and the successful integration of our Western Australian business has exceeded expectations."
"Santos has now delivered positive free cash flow for thirteen consecutive quarters."
"These cash flows underpin our brownfield growth strategy where we hit a number of significant milestones during the quarter, including farming-in to P'nyang and awarding the subsea contract for Barossa."
"Following successful appraisal of Dorado and Moomba South, we expect to book significant resource and reserve upgrades respectively for these assets."
"We are also hitting record drilling rates in the onshore business and completed two appraisal wells for our carbon capture, utilisation and storage project in the Cooper Basin."
"Second quarter production was however impacted by planned maintenance in the Cooper Basin and PNG LNG."
"With this maintenance activity now mostly behind us, we currently expect stronger production in the second half," Mr Gallagher said.
Comparative performance
| Santos share | Units | Q2 2019 | Q1 2019 | Change | 2019 YTD | 2018 YTD | Change |
|---|---|---|---|---|---|---|---|
| Production | mmboe | 18.6 | 18.4 | 1% | 37.0 | 28.0 | 32% |
| Sales volume | mmboe | 22.4 | 22.8 | -2% | 45.2 | 38.0 | 19% |
| Ave. realised oil price | $/bbl | 75.26 | 68.90 | 9% | 72.11 | 75.37 | -4% |
| Sales revenue | $million | 959 | 1,015 | -5% | 1,974 | 1,680 | 18% |
| Capital expenditure1 | $million | 270 | 177 | 53% | 447 | 306 | 46% |
1 Capital expenditure including restoration expenditure and acquisition of exploration assets but excluding capitalised interest.
Media enquiries
Daniela Ritorto +61 8 8116 5167 / +61 (0) 455 319 770 [email protected]
Investor enquiries
Andrew Nairn +61 8 8116 5314 / +61 (0) 437 166 497 [email protected]
Santos Limited ABN 80 007 550 923 GPO Box 2455, Adelaide SA 5001 T +61 8 8116 5000 F +61 8 8116 5131 www.santos.com
| Product | Unit | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| LNG | 000 t | 714.6 | 768.0 | 630.8 | 1,482.6 | 1,273.2 |
| Domestic sales gas & ethane | PJ | 64.3 | 65.5 | 52.6 | 129.8 | 106.2 |
| Crude oil | 000 bbls | 2,666.2 | 2,897.6 | 2,863.9 | 5,563.9 | 5,297.8 |
| Condensate | 000 bbls | 1,261.7 | 1,298.7 | 811.6 | 2,560.3 | 1,889.6 |
| LPG | 000 t | 77.8 | 17.0 | 43.8 | 94.7 | 65.3 |
| Sales | ||||||
| Own product | mmboe | 17.9 | 17.4 | 13.5 | 35.3 | 27.3 |
| Third-party | mmboe | 4.5 | 5.4 | 5.6 | 9.9 | 10.7 |
| Total sales volume | mmboe | 22.4 | 22.8 | 19.1 | 45.2 | 38.0 |
Sales volumes (Santos share)
Second quarter sales volumes were lower than the prior quarter primarily due to the timing of LNG and liquids shipments. Two PNG LNG cargoes were on the water at the end of the quarter and liquids cargoes from the Cooper Basin and Western Australia lifted in early July.
Sales revenues (Santos share)
| Product | Unit | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| LNG | $m | 341 | 436 | 323 | 777 | 599 |
| Domestic sales gas & ethane | $m | 285 | 303 | 254 | 588 | 515 |
| Crude oil | $m | 211 | 190 | 225 | 401 | 399 |
| Condensate | $m | 83 | 79 | 61 | 161 | 132 |
| LPG | $m | 39 | 8 | 23 | 47 | 34 |
| Sales | ||||||
| Own product | $m | 712 | 787 | 598 | 1,499 | 1,157 |
| Third-party | $m | 247 | 228 | 288 | 475 | 523 |
| Total sales revenue | $m | 959 | 1,015 | 886 | 1,974 | 1,680 |
| Third-party purchase costs | $m | 196 | 207 | 209 | 403 | 408 |
Second quarter sales revenues were lower than the prior quarter primarily due to lower average oil-linked LNG and domestic gas prices, and the timing of LNG and liquids shipments. Two PNG LNG cargoes were on the water at the end of the quarter and liquids cargoes from the Cooper Basin and Western Australia lifted in early July.
Average realised prices
| Product | Unit | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| LNG price | US$/mmBtu | 9.09 | 10.79 | 9.74 | 9.97 | 8.96 |
| Domestic gas price | US$/GJ | 4.40 | 4.62 | 4.83 | 4.51 | 4.85 |
| Oil price | US$/bbl | 75.26 | 68.90 | 78.61 | 72.11 | 75.37 |
| Condensate price | US$/bbl | 65.39 | 60.77 | 74.52 | 63.02 | 69.77 |
| LPG price | US$/t | 505.92 | 466.03 | 525.03 | 499.12 | 526.61 |
The average realised LNG price was lower than the prior quarter reflecting the linkage of sales contracts to a lagged Japan Customs-cleared Crude (JCC) price, while lower domestic gas prices primarily reflect lower oil-linked contracts and FX movements on AUD denominated contracts.
The average realised oil price in the quarter was significantly higher than average Dated Brent due to Santos' highquality crudes in Western Australia and the Cooper Basin commanding a strong premium.
Production by asset (Santos share)
| Asset | Unit | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Western Australia | mmboe | 7.7 | 7.2 | 2.8 | 14.9 | 5.6 |
| Cooper Basin | mmboe | 3.9 | 3.8 | 3.9 | 7.7 | 7.5 |
| Queensland & NSW | mmboe | 3.2 | 3.1 | 3.0 | 6.3 | 5.9 |
| PNG | mmboe | 3.2 | 3.2 | 2.6 | 6.4 | 4.6 |
| Northern Australia | mmboe | 0.6 | 1.0 | 0.5 | 1.6 | 1.7 |
| Asia1 | mmboe | - | - | 1.4 | - | 2.7 |
| Total production | mmboe | 18.6 | 18.4 | 14.2 | 37.0 | 28.0 |
1 Asian assets sold effective September 2018.
Production by product (Santos share)
| Product | Unit | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Sales gas to LNG plant | PJ | 30.9 | 32.3 | 26.6 | 63.2 | 53.6 |
| Domestic sales gas & ethane | PJ | 57.2 | 55.7 | 40.9 | 112.9 | 79.3 |
| Crude oil | 000 bbls | 2,071.2 | 2,047.3 | 1,555.9 | 4,118.5 | 3,190.4 |
| Condensate | 000 bbls | 1,088.6 | 1,044.5 | 727.4 | 2,133.1 | 1,413.2 |
| LPG | 000 t | 36.6 | 35.3 | 37.8 | 71.9 | 72.3 |
| Total production | mmboe | 18.6 | 18.4 | 14.2 | 37.0 | 28.0 |
Second quarter production was higher than the prior quarter primarily due to higher production volumes in Western Australia and across the onshore assets, partially offset by planned maintenance and shipment timing at Darwin LNG.
2019 Guidance
Production guidance is narrowed to 73-77 mmboe and sales volume guidance to 90-97 mmboe. Unit production cost guidance is lowered to $7.25-7.75/boe. All guidance is shown in the table below.
| 2019 guidance item | Previous Guidance | Updated guidance |
|---|---|---|
| Sales volumes | 88-98 mmboe | 90-97 mmboe |
| Production | 71-78 mmboe | 73-77 mmboe |
| Upstream production costs1 | $7.50-8.00/boe | $7.25-7.75/boe |
| Capital expenditure | ~$1.1 billion | No change |
| 1 Production cost guidance includes all planned shutdown activity and PNG LNG earthquake recovery costs. |
Further detail of 2019 year-to-date capital expenditure, including exploration and evaluation expenditure, is reported in the table on page 11 of this report.
Financial information included in this report is unaudited and subject to finalisation of the company's accounting and audit processes, and Board review. As such, actual results for the half-year ended 30 June 2019 may differ from the information given in this report.
2019 First-half results
Santos will release its results for the half-year ended 30 June 2019 on Thursday 22 August 2019. The first-half report (incorporating Appendix 4D) and associated investor presentation will be available on Santos' website at www.santos.com. A webcast briefing including investor/analyst questions will also be available on Santos' website from 11:00am AEST on 22 August 2019.
Balance sheet and net debt
As disclosed in the Notes to the 2018 Consolidated Financial Statements, Santos will adopt the new AASB 16 Leases standard in 2019. As at 31 December 2018, the estimated balance sheet debt impact of the lease liabilities was $294 million.
Net debt reduced to $3.1 billion as at 30 June 2019 but excluding the impact of the adoption of AASB 16. Santos had cash and cash equivalents of $1.2 billion and gross debt of $4.3 billion (excluding the impact of AASB 16) as at 30 June 2019.
Oil price hedging
2.2 million barrels of oil hedging expired in the second quarter.
The following oil price hedging positions were in place as at 30 June 2019.
| Open oil price positions | 2019 | 2020 |
|---|---|---|
| Swaps (barrels) | 480,000 | |
| Brent fixed swap price ($/bbl) | US$63.23 | |
| Re-participating swaps (barrels)1 | 240,000 | |
| Brent fixed swap price ($/bbl) | US$67.39 | |
| Brent long call price ($/bbl) | US$76.00 | |
| Zero-cost collars (barrels)2 | 4,734,000 | |
| Ceiling ($/bbl) | US$79.83 | |
| Floor ($/bbl) | US$51.35 | |
| Re-participating 3-Ways (barrels)3 | 4,180,000 | |
| Brent long call price ($/bbl) | US$77.64 | |
| Brent short call price ($/bbl) | US$70.00 | |
| Brent long put price ($/bbl) | US$55.00 |
1When Brent price is below the weighted average long call price, Santos realises fixed swap price. When Brent price is above the call strike price, Santos realises Brent price less the difference between the long call price and the fixed swap price.
2 When Brent price is above the weighted average ceiling price, Santos realises ceiling price. When Brent price is between the floor and ceiling price, Santos realises Brent price. When Brent price is below the floor price, Santos realises floor price.
3 When Brent price is above the weighted average long call price, Santos realises Brent price less the difference between the long call price and the short call price. When Brent price is between the short call price and long call price, Santos realises short call price. When Brent price is below the long put price, Santos realises long put price.
| Santos share | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Sales volume | ||||||
| Sales gas | PJ | 34.4 | 32.6 | 14.9 | 67.0 | 28.7 |
| Condensate | 000 bbls | 290.9 | 175.4 | 146.4 | 466.3 | 323.8 |
| Crude oil | 000 bbls | 897.2 | 955.5 | 139.5 | 1,852.6 | 439.8 |
| Total sales volume | mmboe | 7.1 | 6.7 | 2.9 | 13.8 | 5.7 |
| Total sales revenue | $million | 219 | 198 | 81 | 417 | 168 |
| Production | ||||||
| Sales gas | PJ | 35.5 | 33.3 | 14.6 | 68.8 | 27.9 |
| Condensate | 000 bbls | 421.2 | 351.9 | 163.2 | 773.1 | 307.6 |
| Crude oil | 000 bbls | 1,208.9 | 1,187.0 | 151.9 | 2,396.0 | 475.7 |
| Total production | mmboe | 7.7 | 7.2 | 2.8 | 14.9 | 5.6 |
| Capital expenditure | $million | 79 | 43 | 15 | 122 | 17 |
Western Australia
Notwithstanding an outage at a major domestic customer in June, WA sales gas production volumes were 6% higher than the first quarter due to stronger volumes and shutdowns for tropical cyclone Veronica in the prior quarter.
Condensate sales volumes were higher than the prior quarter due to shipment timing and higher volumes lifted from the liquids-rich Varanus Island gas fields.
Crude sales volumes were lower than the prior quarter primarily due to the timing of liftings.
The Santos-operated offshore drilling campaign continued during the quarter. Following the previously reported success at the first well, Corvus-2, the drilling rig moved to the Bedout Basin to undertake a three-well appraisal and exploration program around the major oil and gas discovery made at Dorado-1 during 2018.
The Dorado-2 appraisal well was spudded on 1 May and was drilled to a total depth of 4,593 metres. The well achieved its appraisal objectives and has significantly de-risked a future development of the Dorado field. Santos now expects to book a significant resource upgrade above its currently booked 2C resource for Dorado. For further well information, refer to Santos' ASX release of 6 June 2019.
Following Dorado-2, the Roc South-1 exploration well was spudded on 16 June, targeting a trap with similarities to the Dorado discovery. Subsequent to the end of the quarter, wireline logs indicated that the well had failed to encounter commercial hydrocarbons in the primary and secondary targets and the well will be plugged and abandoned.
Following Roc South-1, the rig will return to Dorado to drill the Dorado-3 appraisal well, where production testing is planned.
During the quarter, Santos (100%) was awarded gazettal licence WA17-4 (designated WA-540-P) adjacent to its existing acreage position in the Bedout Basin.
Cooper Basin
| Santos share | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Sales volume | ||||||
| Sales gas and ethane | ||||||
| Own product | PJ | 15.0 | 15.8 | 14.2 | 30.8 | 29.6 |
| Third-party | PJ | 1.0 | 0.8 | 0.6 | 1.8 | 1.5 |
| Total | PJ | 16.0 | 16.7 | 14.8 | 32.6 | 31.1 |
| Condensate | ||||||
| Own product | 000 bbls | 549.0 | 490.5 | 314.8 | 1,039.5 | 755.5 |
| Third-party | 000 bbls | 33.0 | 84.2 | 52.6 | 117.2 | 151.9 |
| Total | 000 bbls | 582.0 | 574.7 | 367.4 | 1,156.8 | 907.4 |
| LPG | ||||||
| Own product | 000 t | 69.5 | 7.0 | 41.6 | 76.5 | 47.9 |
| Third-party | 000 t | 1.6 | 2.9 | 2.9 | 4.5 | 8.9 |
| Total | 000 t | 71.1 | 9.8 | 44.5 | 80.9 | 56.8 |
| Crude oil | ||||||
| Own product | 000 bbls | 972.5 | 551.0 | 604.1 | 1,523.6 | 1,076.8 |
| Third-party | 000 bbls | 792.9 | 1,387.8 | 1,489.9 | 2,180.8 | 2,545.4 |
| Total | 000 bbls | 1,765.4 | 1,938.9 | 2,094.0 | 3,704.3 | 3,622.2 |
| Total sales volume | mmboe | 5.7 | 5.4 | 5.4 | 11.1 | 10.3 |
| Total sales revenue | $million | 289 | 245 | 278 | 534 | 502 |
| Production | ||||||
| Sales gas and ethane | PJ | 15.0 | 14.6 | 15.4 | 29.6 | 29.7 |
| Condensate | 000 bbls | 244.9 | 222.4 | 240.8 | 467.3 | 448.8 |
| LPG | 000 t | 30.3 | 28.7 | 35.2 | 59.1 | 62.9 |
| Crude oil | 000 bbls | 859.1 | 856.9 | 769.1 | 1,716.0 | 1,427.9 |
| Total production | mmboe | 3.9 | 3.8 | 3.9 | 7.7 | 7.5 |
| Capital expenditure | $million | 71 | 59 | 48 | 130 | 108 |
Second quarter gas production in the Cooper Basin was higher than the prior quarter due to a strong focus on delivery of new gas wells and alignment of planned maintenance activities to optimise production uptime.
Continuous improvement in operations efficiency has resulted in a number of new benchmarks set in the Cooper Basin:
- Munkarie-11 under balance drilled (UBD) gas well rig release to online in 18 days;
- Namur-17 shallow gas well (total depth 4,248ft) set a new record for fastest total well execution duration in Cooper with a rig release to rig release drill time of 4.3 days and a spud to total depth time of 2.3 days;
- Coopers Creek-5 gas well achieved 5.8 days spud to total depth (10,332ft), the fastest deep well in the Cooper Basin.
Strong crude oil production has been maintained in-line with the prior two quarters, with better than expected results from the Watkins field development.
During the quarter, 12 development wells (11 gas and one oil), 11 appraisal wells (five gas and six oil), and two near field exploration wells (one oil and one gas) were drilled. Of the appraisal wells, three gas wells and six oil wells were cased and suspended for testing and support further activity in the areas. Successful near field exploration activities resulted in Raffle North West-1 encountering gas pay in the Permian reservoirs, and was cased and suspended for future production.
A total of 51 wells were drilled in the first-half and the Cooper Basin remains on track to drill more than 100 wells and grow year-on-year production in 2019.
Anna North 1, a gas exploration well drilled in Q4 2018 that intersected gas bearing Toolachee Formation, has delivered a high side test result flowing at a stabilised well test rate of 6.7 mmscf/d on 26/64" choke at 2,290 psi flowing WHP. The well will be connected for production and further assessment of follow-up potential.
Field development planning for the Moomba South project continued during the quarter with a view to taking a final investment decision by year-end. Following the successful appraisal program, Santos expects to make a reserve booking at the end of 2019.
Also during the quarter, two wells were drilled as part of the carbon capture, utilisation and storage (CCUS) program to appraise the potential to inject carbon dioxide from Moomba into the reservoir to enhance oil recovery and ultimately store carbon dioxide. Coring in the two wells was successfully completed and the collected samples are being evaluated in the laboratory.
Queensland & NSW
| Santos share | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Sales volume | ||||||
| GLNG Joint Venture | ||||||
| LNG | 000 t | 377.5 | 410.9 | 382.6 | 788.5 | 730.7 |
| Domestic contracts | PJ | 4.7 | 4.6 | 6.0 | 9.3 | 13.0 |
| Eastern Qld (non-GLNG)1 | PJ | 4.6 | 4.9 | 4.9 | 9.5 | 11.5 |
| Total sales volume2 | mmboe | 5.1 | 5.5 | 5.5 | 10.6 | 11.0 |
| Total sales revenue2 | $million | 227 | 289 | 253 | 516 | 463 |
| Production | ||||||
| GLNG Joint Venture | ||||||
| Sales gas to LNG | PJ | 11.7 | 10.2 | 10.8 | 22.0 | 21.1 |
| Domestic contracts | PJ | 1.2 | 2.1 | 1.0 | 3.3 | 1.9 |
| Eastern Qld (non-GLNG)1 | PJ | 5.4 | 5.5 | 5.5 | 10.9 | 11.0 |
| NSW | PJ | 0.2 | 0.2 | 0.2 | 0.4 | 0.4 |
| Total production2 | mmboe | 3.2 | 3.1 | 3.0 | 6.3 | 5.9 |
| Capital expenditure | $million | 76 | 57 | 63 | 133 | 110 |
1 Combabula, Scotia (Santos legacy domestic volumes), Spring Gully and Denison.
2 Total sales volume, sales revenue and production include sales gas from NSW assets.
| GLNG operational data(gross) | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Sales gas to domestic market | PJ | 22 | 19 | 25 | 40 | 48 |
| LNG produced1 | 000 t | 1,270 | 1,307 | 1,239 | 2,577 | 2,456 |
| Sales gas to LNG plant | ||||||
| GLNG equity gas | PJ | 41 | 37 | 38 | 78 | 71 |
| Santos portfolio gas | PJ | 14 | 14 | 14 | 28 | 29 |
| Third-party | PJ | 22 | 28 | 23 | 50 | 49 |
| Total sales gas to LNG plant | PJ | 77 | 79 | 75 | 156 | 149 |
| LNG cargoes shipped | 21 | 23 | 21 | 44 | 40 |
1Includes LNG produced from GLNG equity gas, Santos portfolio gas and third-party quantities.
Including gas volumes originally slated for export cargoes but diverted to the domestic market by the GLNG partners, first-half LNG-equivalent production was 2.7 million tonnes. Daily LNG-equivalent run-rates of 6 mtpa were achieved during the first half and GLNG remains on track to deliver an LNG-equivalent run-rate of 6 mtpa by year end.
A one-month planned statutory shutdown of GLNG train 1 is scheduled for the third quarter.
Gross GLNG-operated upstream sales gas production increased to 600 TJ/d at the end of the quarter, supported by continued steady production growth from Roma and Scotia.
Gross daily production from Fairview was 410 TJ/day at the end of the quarter. Production continues to be supported by a focussed program of development and well optimisation projects.
Gross daily production from Roma increased to 107 TJ/day at the end of the quarter. Production continues to build, supported by growth in both legacy and new development areas of the field. Drilling continues in the Roma East project with 222 wells drilled and 181 wells online. Production from the project is building in line with expectation as dewatering continues.
Gross daily production from the Scotia field grew to 74 TJ/d at the end of the quarter. Production from the field continues to grow as the reservoir dewaters.
Production from the Arcadia field remained steady. Drilling continues in the Arcadia Valley project with 95 wells drilled and 23 wells online to date. First production to sales from this phase of development is expected on schedule in late 2019.
Santos' share of production from the non-operated Combabula and Spring Gully fields was 41 TJ/day.
102 wells were drilled across the GLNG acreage in the second quarter. This sets a new record for wells drilled in a single quarter across GLNG operations. A total of 189 wells were drilled in the first-half and the drilling pace remains on track to deliver 350-400 wells by year end. Fifty-four development wells were drilled across Santos' non-operated Eastern Queensland acreage in the quarter.
In Eastern Queensland, ATP 2045 (gazettal PLR2018-1-5) was awarded to the Santos (50%, Operator) / Shell (50%) Joint Venture.
In NSW, Santos announced it had signed non-binding memoranda of understanding with Brickworks and Weston Energy for the supply of natural gas from the Narrabri Gas Project. Under the proposed transactions, Santos would supply Brickworks with up to 3 PJ per year of natural gas from Narrabri for seven years from 2025 and Weston Energy with 10 PJ per year for 10 years, commencing no earlier than 2023. The supply of Narrabri gas is subject to a final investment decision, negotiation and execution of a definitive gas supply agreement and approvals by each party.
PNG
| Santos share | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Sales volume | ||||||
| PNG LNG | ||||||
| LNG1 | 000 t | 284.0 | 265.8 | 203.4 | 549.7 | 384.3 |
| Condensate | 000 bbls | 297.2 | 389.4 | 252.1 | 686.6 | 502.0 |
| Crude oil | 000 bbls | 3.6 | 3.3 | 1.9 | 6.9 | 5.2 |
| Total sales volume | mmboe | 3.0 | 2.9 | 2.1 | 5.9 | 4.1 |
| Total sales revenue | $million | 150 | 175 | 115 | 325 | 215 |
| Production | ||||||
| PNG LNG | ||||||
| Sales gas to LNG1 | PJ | 16.5 | 17.0 | 13.3 | 33.5 | 23.7 |
| Condensate | 000 bbls | 330.1 | 342.5 | 286.8 | 672.6 | 508.1 |
| Crude oil | 000 bbls | 3.1 | 3.3 | 2.2 | 6.5 | 4.9 |
| Total production | mmboe | 3.2 | 3.2 | 2.6 | 6.4 | 4.6 |
| Capital expenditure | $million | 13 | 7 | 9 | 20 | 15 |
1Includes SE Gobe
| PNG LNG operational data(gross) | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Production | ||||||
| LNG | mt | 2.1 | 2.2 | 1.6 | 4.3 | 2.9 |
| Sales gas to LNG plant | PJ | 124 | 127 | 99 | 251 | 177 |
| Condensate1 | 000 bbls | 2,428 | 2,539 | 2,125 | 4,967 | 3,761 |
| Sales gas (SE Gobe)2 | PJ | 2 | 2 | 1 | 4 | 4 |
| LNG cargoes shipped | 27 | 29 | 18 | 56 | 38 |
1Measured at the Kutubu entry point.
2 Purchased by PNG LNG.
Strong performance continued in the second quarter notwithstanding planned plant maintenance in May and June. The LNG plant operated at an annualised rate of 8.4 mtpa during the second quarter and achieved a record daily rate equivalent to 9.25 mtpa annualised in early July.
Pressure build-up monitoring continues at the Muruk-2 appraisal well. As previously reported, results from the drill stem test confirmed the presence of gas in the Toro A reservoir with pressure data and gas composition establishing a likely connection to the Muruk-1 discovery.
In May, Santos announced that it had signed a binding letter of intent to acquire a 14.3% interest (pre-government backin) in Petroleum Retention Licence 3 (PRL 3), which contains the P'nyang natural gas field in Papua New Guinea. The arrangement marked an important step towards the proposed expansion at the PNG LNG plant via a 2.7 mtpa third LNG train fed by existing Project resources and P'nyang. For further information, refer to Santos' ASX release of 16 May 2019.
Northern Australia
| Santos share | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Sales volume | ||||||
| Darwin LNG | ||||||
| LNG | 000 t | 53.1 | 91.3 | 44.8 | 144.4 | 158.3 |
| Bayu Undan | ||||||
| Condensate | 000 bbls | 77.1 | 160.2 | 44.5 | 237.3 | 152.8 |
| LPG | 000 t | 6.7 | 7.4 | (0.8) | 14.0 | 8.4 |
| Total sales volume | mmboe | 0.6 | 1.1 | 0.4 | 1.7 | 1.7 |
| Total sales revenue | $million | 33 | 52 | 28 | 85 | 76 |
| Production | ||||||
| Darwin LNG | ||||||
| Sales gas to LNG | PJ | 2.7 | 5.1 | 2.5 | 7.7 | 8.8 |
| Bayu Undan | ||||||
| Condensate | 000 bbls | 92.5 | 127.6 | 34.0 | 220.1 | 143.7 |
| LPG | 000 t | 6.3 | 6.6 | 2.5 | 12.8 | 9.3 |
| Total production | mmboe | 0.6 | 1.0 | 0.5 | 1.6 | 1.7 |
| Capital expenditure | $million | 12 | 6 | 20 | 17 | 29 |
| Darwin LNG / Bayu-Undanoperational data (gross) | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Production | ||||||
| LNG | 000 t | 620 | 940 | 540 | 1,560 | 1,487 |
| Sales gas to LNG plant | PJ | 38 | 57 | 34 | 94 | 91 |
| Condensate | 000 bbls | 1,652 | 1,529 | 535 | 3,181 | 1,539 |
| LPG | 000 t | 81 | 77 | 32 | 158 | 95 |
| LNG cargoes shipped | 9 | 14 | 9 | 23 | 24 |
Sales and production volumes were lower than the prior quarter due to the shipping schedule and planned maintenance activities at Darwin LNG.
On 9 May, Santos announced that the Barossa project had strengthened its position as the leading candidate for Darwin LNG backfill with the award of the Subsea Production System (SPS) contract. Following a competitive tender, Technip Oceania Pty Ltd was the successful bidder to supply the SPS. The Engineering, Procurement and Construction (EPC) contract represents a commitment to long-lead items in advance of a final investment decision expected in early 2020. Evaluation of all the other major tenders for the FPSO, gas export pipeline, subsea umbilical riser and flowline package, and drilling rig is also progressing well.
Santos also announced that the Barossa Joint Venture had entered into exclusive negotiations with the Darwin LNG Joint Venture for the supply of backfill gas. The arrangement gives the Barossa JV an exclusive commercial negotiation period to reach a processing services agreement as well as settle on a tariff.
The wildcat Dukas-1 exploration well targeting a conventional sub-salt play in the Amadeus Basin, spudded on 16 April and was drilling ahead at the end of the quarter.
Approvals from Northern Territory regulatory authorities for the planned McArthur Basin drilling campaign are progressing. The program is likely to comprise a single well in 2019 which will drill horizontally through the Velkerri shale objective. Subject to regulatory approvals, the well is planned to spud in the third quarter.
Corporate, exploration and eliminations
| Santos share | Units | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|---|
| Total sales volume | mmboe | 0.9 | 1.2 | 1.3 | 2.1 | 2.5 |
| Total sales revenue | $million | 42 | 55 | 62 | 97 | 123 |
Sales volumes and revenues in the corporate segment primarily represent gas trading activities.
Capital expenditure was higher than the prior quarter primarily due to the drilling of the Dukas-1 exploration well in the Amadeus Basin, onshore Northern Territory.
Capital expenditure
Total exploration, evaluation and development expenditure is summarised in the table below.
| $million | Q2 2019 | Q1 2019 | Q2 2018 | 2019 YTD | 2018 YTD |
|---|---|---|---|---|---|
| Capital expenditure | |||||
| Exploration1 | 12 | 19 | 21 | 32 | 38 |
| Evaluation | 86 | 15 | 11 | 100 | 23 |
| Development and other capex (inc restoration) | 172 | 143 | 135 | 315 | 245 |
| Capital expenditure excl capitalised interest | 270 | 177 | 167 | 447 | 306 |
| Capitalised interest | 2 | 2 | 2 | 4 | 3 |
| Total capital expenditure1 | 272 | 179 | 169 | 451 | 309 |
| Exploration and evaluation expensed | |||||
| Exploration | 17 | 7 | 19 | 24 | 36 |
| Evaluation | - | 3 | 6 | 3 | 9 |
| Total current year expenditure | 17 | 10 | 25 | 27 | 45 |
| Write-off of amounts capitalised in prior years | - | - | - | - | - |
| Total expensed | 17 | 10 | 25 | 27 | 45 |
1 Includes acquisition of exploration assets
Seismic activity
The table below details seismic activity during the quarter and status.
| Permit | Basin/area | Survey | Type | km/km2 | Status |
|---|---|---|---|---|---|
| WA437P, WA438P | Bedout, WA | Keraudren | 3D | 3,090 km2 | 61% complete |
| ATP2017 | Bowen, Qld | Tinowon | 2D | 30 km | 22% complete |
Drilling summary
Exploration activity
| Northern Australia | ||||||
|---|---|---|---|---|---|---|
| Well name | Basin/area | Santos | Well status | |||
| Dukus 1ST1 | Amadeus | 40% | Drilling |
Near-field exploration (NFE) / Appraisal wells
| Cooper Basin oil | ||||||
|---|---|---|---|---|---|---|
| Well name | Basin/area | Santos | Well status | |||
| Tennaperra 6 | QLD | 70% | C&S, successful | |||
| Watson North 2 | QLD | 55.5% | C&S, successful | |||
| Watson North 3 | QLD | 55.5% | C&S, successful | |||
| Bankhead 1 | SA | 66.6% | P&A | |||
| Charo 17 | SA | 66.6% | C&S, successful | |||
| Gidgealpa 62 | SA | 66.6% | C&S, successful | |||
| Gidgealpa 63 | SA | 66.6% | C&S, successful |
| Cooper Basin gas | ||||||
|---|---|---|---|---|---|---|
| Well name | Basin/area | Santos | Well status | |||
| Dunadoo 2 | QLD | 60.06% | C&S, successful | |||
| Durham Downs 11 | QLD | 60.06% | C&S, successful | |||
| Raffle North West 1 | QLD | 60.06% | C&S, successful | |||
| Bookabourdie 12 | SA | 66.6% | P&A | |||
| Namur 18 | SA | 66.6% | C&C, successful | |||
| Taylor South 2 | SA | 66.6% | P&A |
| Papua New Guinea gas | |||||
|---|---|---|---|---|---|
| Well name | Basin/area | Santos | Well status | ||
| Muruk 2#** | SouthernHighlandsPNG | 10%*** | P&A, successfulappraisal |
| Western Australia gas | ||||||
|---|---|---|---|---|---|---|
| Well name | Basin/area | Santos | Well status | |||
| Corvus 2* | Carnarvon | 100% | P&A, successfulappraisal | |||
| Dorado 2 | Bedout | 80% | P&A, successfulappraisal | |||
| Roc South 1 | Bedout | 80% | P&A |
Not operated by Santos
* Spud in Q1, completed in Q2
** Spud in Q4, completed in Q2
*** Muruk-2 was drilled in PDL 9. Santos holds a 10% economic interest in any Muruk hydrocarbons located in PDL 9 and is funding a corresponding share of the appraisal well.
Development wells
| Cooper Basin oil | ||||
|---|---|---|---|---|
| Well name | Basin/area | Santos | Well status | |
| Cocinero 10 | QLD | 55% | C&C, successful |
| Cooper Basin gas | ||||
|---|---|---|---|---|
| Well name | Basin/area | Santos | Well status | |
| Durham Downs 10 | QLD | 60.06% | P&A | |
| Durham DownsNorth 7 | QLD | 60.06% | C&S, successful | |
| Coopers Creek 4 | SA | 66.6% | C&C, successful | |
| Coopers Creek 5 | SA | 66.6% | C&C, successful oil &gas | |
| Dullingari North22* | SA | 66.6% | C&C, successful | |
| Gidgealpa 64 | SA | 66.6% | C&S, successful | |
| Munkarie 11 | SA | 66.6% | C&C, successful | |
| Namur 16 | SA | 66.6% | C&C, successful | |
| Namur 17 | SA | 66.6% | C&C, successful | |
| Namur 19 | SA | 66.6% | C&C, successful | |
| Nanima 2 | SA | 66.6% | C&C, successful | |
| Strzelecki 33 | SA | 66.6% | C&C, successful |
| Queensland - GLNG gas | |||
|---|---|---|---|
| Well name | Basin/area | Santos | Well status |
| AC18-51-1 | Arcadia | 30% | C&S, successful |
| AC18-56-1 | Arcadia | 30% | C&S, successful |
| AC18-57-1 | Arcadia | 30% | C&S, successful |
| AC18-58-1 | Arcadia | 30% | C&S, successful |
| AC18-65-1 | Arcadia | 30% | C&S, successful |
| AC18-66-1 | Arcadia | 30% | C&S, successful |
| AC18-69-1 | Arcadia | 30% | C&S, successful |
| AC18-70-1 | Arcadia | 30% | C&S, successful |
| AC18-97-6 | Arcadia | 30% | C&S, successful |
| AC18-97-7 | Arcadia | 30% | C&S, successful |
| AC18-97-8 | Arcadia | 30% | C&S, successful |
| AC23-31-1 | Arcadia | 30% | C&S, successful |
| Castle Hill 6 | Arcadia | 30% | C&S, successful |
| Castle Hill 9 | Arcadia | 30% | C&S, successful |
| Castle Hill 10 | Arcadia | 30% | C&S, successful |
| Castle Hill 11 | Arcadia | 30% | C&S, successful |
| Castle Hill 15 | Arcadia | 30% | C&S, successful |
| Castle Hill 16 | Arcadia | 30% | C&S, successful |
|---|---|---|---|
| Castle Hill 17 | Arcadia | 30% | C&S, successful |
| Castle Hill 20 | Arcadia | 30% | C&S, successful |
| Castle Hill 21 | |||
| Arcadia | 30% | C&S, successful | |
| Mount Kingsley 12 | Arcadia | 30% | C&S, successful |
| Mount Kingsley 13 | Arcadia | 30% | C&S, successful |
| FV11-59-21* | Fairview | 23.85% | C&C, successful |
| FV11-63-1 | Fairview | 23.85% | C&S, successful |
| FV11-74-21 | Fairview | 23.85% | C&C, successful |
| FV11-89-1 | Fairview | 23.85% | C&C, successful |
| FV11-90-1 | Fairview | 23.85% | C&C, successful |
| FV11-91-1 | Fairview | 23.85% | C&C, successful |
| FV12-35-1 | Fairview | 23.85% | C&S, successful |
| FV12-76-1 | Fairview | 23.85% | C&C, successful |
| FV12-77-1 | Fairview | 23.85% | C&S, successful |
| FV12-78-1 | Fairview | 23.85% | C&S, successful |
| FV12-79-1 | Fairview | 23.85% | C&S, successful |
| FV12-80-1 | Fairview | 23.85% | C&S, successful |
| FV12-83-1 | Fairview | 23.85% | C&S, successful |
| FV12-83-1DW1 | Fairview | 23.85% | C&S, successful |
| FV12-90-1 | Fairview | 23.85% | C&S, successful |
| RM40-143-1 | Roma | 30% | C&S, successful |
| RM40-144-1 | Roma | 30% | C&S, successful |
| RM40-145-1 | Roma | 30% | C&S, successful |
| RM40-146-1 | Roma | 30% | C&S, successful |
| RM40-147-1 | Roma | 30% | C&S, successful |
| RM40-148-1 | Roma | 30% | C&S, successful |
| RM40-149-1 | Roma | 30% | C&S, successful |
| RM40-150-1 | Roma | 30% | C&S, successful |
| RM40-151-1 | Roma | 30% | C&S, successful |
| RM40-152-1 | Roma | 30% | C&S, successful |
| RM49-125-1 | Roma | 30% | C&C, successful |
| RM49-136-1 | Roma | 30% | C&C, successful |
| RM49-145-1 | Roma | 30% | C&C, successful |
| RM50-78-1 | Roma | 30% | C&C, successful |
| RM50-79-1 | Roma | 30% | C&C, successful |
| RM50-80-1 | Roma | 30% | C&C, successful |
| RM50-89-1 | Roma | 30% | C&C, successful |
| RM50-90-1 | Roma | 30% | C&C, successful |
| RM50-91-1 | Roma | 30% | C&C, successful |
| RM50-95-1 | Roma | 30% | C&S, successful |
| RM50-96-1 | Roma | 30% | C&S, successful |
| RM50-99-1RM50-100-1 | Roma | 30% | C&C, successful |
| RM50-105-1 | Roma | 30% | C&C, successful |
| RM50-108-1 | Roma | 30% | C&S, successfulC&S, successful |
| RM50-109-1 | Roma | 30% | C&S, successful |
| RM50-119-1 | RomaRoma | 30%30% | C&S, successful |
| RM50-129-1 | Roma | 30% | C&S, successful |
| RM50-130-1 | Roma | 30% | C&S, successful |
| RM50-131-1 | Roma | 30% | C&S, successful |
| RM68-07-1 | Roma | 30% | C&S, successful |
| RM68-08-1 | Roma | 30% | C&S, successful |
|---|---|---|---|
| RM68-13-1 | Roma | 30% | C&S, successful |
| RM68-18-1 | Roma | 30% | C&S, successful |
| RM68-19-1 | Roma | 30% | C&C, successful |
| RM68-23-1 | Roma | 30% | C&S, successful |
| RM68-24-1 | Roma | 30% | C&S, successful |
| RM68-25-1 | Roma | 30% | C&S, successful |
| RM68-29-1 | Roma | 30% | C&S, successful |
| RM68-30-1 | Roma | 30% | C&S, successful |
| RM68-33-1 | Roma | 30% | C&S, successful |
| RM68-34-1 | Roma | 30% | C&S, successful |
| RM68-35-1 | Roma | 30% | C&S, successful |
| RM68-46-1 | Roma | 30% | C&S, successful |
| RM68-55-1 | Roma | 30% | C&S, successful |
| RM68-56-1 | Roma | 30% | C&S, successful |
| RM68-64-1 | Roma | 30% | C&S, successful |
| RM68-65-1 | Roma | 30% | C&S, successful |
| RM68-72-1 | Roma | 30% | C&S, successful |
| RM68-73-1 | Roma | 30% | C&S, successful |
| RM68-74-1 | Roma | 30% | C&C, successful |
| RM68-75-1 | Roma | 30% | C&S, successful |
| RM68-76-1 | Roma | 30% | C&S, successful |
| RM68-86-1 | Roma | 30% | C&C, successful |
| RM68-88-1 | Roma | 30% | C&C, successful |
| RM68-98-1 | Roma | 30% | C&C, successful |
| RM68-99-1 | Roma | 30% | C&C, successful |
| RM68-109-1 | Roma | 30% | C&C, successful |
| RM68-117-1 | Roma | 30% | C&C, successful |
| RM68-120-1 | Roma | 30% | C&C, successful |
| RM68-138-1 | Roma | 30% | C&C, successful |
| RM68-141-1 | Roma | 30% | C&C, successful |
| RM68-150-1 | Roma | 30% | C&C, successful |
| RM68-151-1 | Roma | 30% | C&S, successful |
| Queensland - Eastern Queensland gas (EQ) | |||
|---|---|---|---|
| Well name | Basin/area | Santos | Well status |
| Combabula 341# | Combabula | 7.28% | C&S, successful |
| Combabula 342# | Combabula | 7.28% | C&S, successful |
| Combabula 361# | Combabula | 7.28% | C&S, successful |
| Combabula 367# | Combabula | 7.28% | C&S, successful |
| Combabula 385# | Combabula | 7.28% | C&S, successful |
| Combabula 386# | Combabula | 7.28% | C&S, successful |
| Combabula 405# | Combabula | 7.28% | C&S, successful |
| Combabula 406# | Combabula | 7.28% | C&S, successful |
| Combabula 407# | Combabula | 7.28% | C&S, successful |
| Combabula 408# | Combabula | 7.28% | C&S, successful |
| Combabula 409# | Combabula | 7.28% | C&S, successful |
| Combabula 410# | Combabula | 7.28% | C&S, successful |
| Combabula 411# | Combabula | 7.28% | C&S, successful |
| Combabula 413# | Combabula | 7.28% | C&S, successful |
| Combabula 427# | Combabula | 7.28% | C&S, successful |
| Combabula 428# | Combabula | 7.28% | C&S, successful |
| Combabula 429# | Combabula | 7.28% | C&S, successful |
|---|---|---|---|
| Combabula 430# | Combabula | 7.28% | C&S, successful |
| Combabula 432# | Combabula | 7.28% | C&S, successful |
| Combabula 435# | Combabula | 7.28% | C&S, successful |
| Combabula 436# | Combabula | 7.28% | C&S, successful |
| Combabula 478# | Combabula | 7.28% | C&S, successful |
| Combabula 479# | Combabula | 7.28% | C&S, successful |
| Combabula WB02# | Combabula | 7.28% | Drilling |
| Reedy Creek 76# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 77# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 86# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 106# | |||
| Reedy Creek 107# | CombabulaCombabula | 7.28%7.28% | C&S, successfulC&S, successful |
| Reedy Creek 108# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 137# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 138# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 139# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 140# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 141# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 142# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 146# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 165# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 166# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 167# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 168# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 169# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 196# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 197# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 201# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 229# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 232# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 280# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 281# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 288# | Combabula | 7.28% | C&S, successful |
| Reedy Creek 289# | Combabula | 7.28% | C&S, successful |
| Durham Ranch860#* | Spring Gully | 4% | C&S, successful |
| Durham Ranch901# | Spring Gully | 4% | Drilling |
| Durham Ranch905# | Spring Gully | 4% | C&S, successful |
| Durham Ranch907# | Spring Gully | 4% | C&S, successful |
Not operated by Santos
* Spud in Q1, completed in Q2
Abbreviations and conversion factors
| Abbreviations | Conversion factors | ||
|---|---|---|---|
| C&C | cased and completed | Sales gas and ethane, 1 PJ | 171.937 boe x 10³ |
| C&S | cased and suspended | Crude oil, 1 barrel | 1 boe |
| gas | coal seam gas | Condensate, 1 barrel | 0.935 boe |
| DES | delivered ex ship | LPG, 1 tonne | 8.458 boe |
| FPSO | floating production, storage and offloading | LNG, 1 PJ | 18,040 tonnes |
| GJ | Gigajoules | LNG, 1 tonne | 52.54 mmBtu |
| kbbls | thousand barrels | ||
| kt | thousand tonnes | ||
| LNG | liquefied natural gas | ||
| LPG | liquefied petroleum gas | ||
| m | Million | ||
| mmbbl | million barrels | ||
| mmboe | million barrels of oil equivalent | ||
| mmBtu | million British thermal units | ||
| mmscf | million standard cubic feet | ||
| mt | million tonnes | ||
| mtpa | million tonnes per annum | ||
| NFE | near-field exploration | ||
| P&A | plugged and abandoned | ||
| pa | per annum | ||
| PJ | petajoules | ||
| PSC | production sharing contract | ||
| t | tonnes | ||
| TJ | terajoules | ||
Disclaimer
This report contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates.
All references to dollars, cents or $ in this document are to United States currency, unless otherwise stated.