SANTOS DOWNGRADES PRODUCTION GUIDANCE

MELBOURNE, April 20 (Bernama) -- Santos Ltd, which is associated with Petronas, has downgraded its full year production guidance, citing wild tropical weather for a drop in first quarter production and sales.

Santos says production fell 11 per cent to 11 million barrels of oil equivalent (mmboe) for the three months to March 31 compared to the prior corresponding quarter.

Sales fell four per cent to 13.1 (mmboe) from the first quarter of calendar 2010.

Revenue fell two per cent to A$501 million.

The falls from the fourth quarter of 2010 were even greater, with production and sales down 14 per cent and revenue 17 per cent lower, Santos said in a statement.

As a result of the falls, Santos downgraded its production guidance for the full year to 47-50 mmboe, from previous guidance of 48-52 mmboe.

Flooding and cyclones had constrained the company's production and drilling operations in the quarter, Santos said.

It said oil and gas production were down in the Cooper Basin in central Australia, the Carnarvon Basin and Darwin due to the extreme weather.