Australia's two leading oil and gas companies Woodside and Santos have both achieved their highest-ever quarterly revenues in the three-month period ending 31 December 2021.

Woodside said its sales revenue was US$2.8 billion, up 86% from the third quarter of 2021. Its average realised price increased to $90 per barrel of oil equivalent, up 53% from the previous three months.

The company said it realised an LNG price of $93 per boe in the fourth quarter which "demonstrates the continued strong demand for LNG and improvement in the trading environment over the course of 2021".

Santos said stronger commodity prices and higher sales volumes delivered record quarterly sales revenue of US$1.5 billion, up 34% on the third quarter.

Santos also achieved record annual production for 2021, record sales revenue and record free cash flow.

“Our disciplined, low-cost operating model continues to drive strong performance across the business and has positioned us to take full advantage of the increase in commodity prices. The completion of the Oil Search merger delivers us the size and scale to deliver even stronger outcomes in 2022 and beyond,” said Santos chief executive Kevin Gallagher.

He added that the next stage of Santos' growth "will be disciplined and phased. The Barossa project is 20% complete and making excellent progress, while I was delighted to announce the final investment decision on the Moomba carbon capture and storage project in November. The Dorado phase one and Pikka phase one projects are progressing towards FID this year".

For Woodside, highlights of the December 2021 quarter were the merger agreement for BHP’s oil and gas portfolio with Woodside; the final investment decisions for the Scarborough and Pluto Train 2 projects; and the sale to Global Infrastructure Partners of a 49% interest in Pluto Train 2.

Woodside also reported today non-cash, post-tax impairment reversals related to oil and gas properties of US$582 million comprising $319 million for the Pluto-Scarborough project and $263 million for North West Shelf Gas.

In addition, Woodside said it expects to include a non-cash, post-tax revaluation benefit for the onerous contract provision for the Corpus Christi LNG sale and purchase agreement, resulting in a further reduction of this provision by $95 million.

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