Speculation that Santos
(ASX:STO) is close to a deal over its Gladstone liquefied natural gas project in Queensland has overshadowed the company’s solid quarter production of oil and gas.
The energy company managed to increase revenues during the June quarter despite an 11 per cent drop in production compared to the same time last year.
But the focus remains on Gladstone as the company tries to secure a long-term customer to support a two train development instead of a single train project.
Santos has also been trying to sell a 19 per cent stake in Gladstone as part of the sales agreement.
The Australian Financial Review quotes Santos chief executive David Knox as saying his company is working towards a deal and is currently in discussions with a number of parties on LNG sales, equity in the project and working in collaboration between projects.
Santos reported a net profit of $434 million for the year ended 30 December 2009.
