Santos Limited, producer for oil and gas, predicts its production in 2010 will be below its original forecast due to natural disasters.

Santos chief executive David Knox addressed its shareholders at a company's annual general meeting on Thursday that its production is expected to be between 49 to 52 million barrels of oil equivalent.

"This is slightly below our original forecast for the year due to the floods in central Australia and Queensland impacting our Cooper Basin activities," Mr. Knox said.

Mr. Knox adds that the company will continue with the Gladstone LNG (liquefied natural gas) development and make it as a transformation project.

Peter Coates, Santos chairman, told shareholders that Santos is ranked as one of the most well-sought companies for energy from Asia and Australia, unless taxation policy will hinder its investment plans.

"Our solid base business in Australia and Indonesia will continue to support the ongoing transformation of the company," Mr Coates said.

"Our assets in eastern Australia, the Cooper Basin and Western Australia provide excellent further opportunities, and our Asian acreage present scope for growth."

The Santos chairman remarked that the company has the potential to expand for LNG, with four world-class projects under its belt: Darwin LNG, PNG LNG, GLNG and Bonaparte LNG.

Santos Ltd is one of Australia's gas and oil producers, supplying Australian and Asian customers since 1954.