Monday, July 2

Santos shares hit as GLNG costs rise

Santos Ltd shares have fallen after the cost of its Gladstone liquefied natural gas (GLNG) project rose by 15 per cent.
 
Santos and its joint GLNG owners have brought forward $US2.5 billion in spending on the Queensland project, in order to more rapidly develop its coal seam gas fields.
 
Santos, PETRONAS, Total and KOGAS will put the new funds into the drilling of about 300 more wells in the Fairview and Roma areas.
 
The funds, originally planned for use after 2015, take the cost of the project to $US18.5 billion.
 
Santos' share of the new spending is $US750 million ($A746.38 million), which, it said, would be funded from existing finances.
 
Santos shares closed 5.34 per cent weaker at $10.45, against a benchmark index rise of 0.03 per cent.

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Business Spectator

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