Santos said expanding Australian and international operations saw a 2.9% increase in full year production to a record 57.3 million barrels of oil equivalent (mmboe). This compared with 55.7 mmboe for full year 2001.

Sales volumes in 2002 rose 3.1% to a record 56.8 mmboe, compared with 55.1 mmboe in the previous year. As a result, sales revenue for the year totalled $1.48 billion, a 1.3% increase on the 2001 result of $1.46 billion, and fractionally below the record $1.49 billion in sales achieved in 2000 - a period of sustained record oil prices.

Santos managing director John Ellice-Flint said record annual production was one of the most pleasing aspect of last year's results and he also made special mention of the continuing strong performance during the December quarter.

"Total revenue of $399.6 million for the final three months of 2002, was the third highest on record for any quarter and 19.8% ahead of the comparable 2001 period," he said.

Santos said the $66 million improvement was achieved through an average Australian dollar oil price of $49.17 per barrel for the quarter compared with $33.97 for the previous corresponding period.

The company added increased sales in the Victorian market saw total gas sales quantities for the quarter rise 7.0% to 56.6 Petajoules (PJ) compared with 53.0 PJ for the last three months of 2001.