(Adds background, CEO comments)
Oct 21 (Reuters) - Australia's Santos Ltd (STO) on Thursday posted a record quarterly revenue that beat consensus estimates as a global energy crunch lifted prices of liquefied natural gas (LNG).
The country's second-largest independent gas producer, which is working on a takeover of Oil Search Ltd (OSH) , also slightly raised the lower end of its annual production outlook.
It now expects to produce between 88 and 91 million barrels of oil equivalent (mmboe) in 2021, higher than its previous forecast of between 87 and 91 mmboe.
Santos, like other energy firms globally, has benefited from record high LNG prices on increased demand for crude oil, the potential for a cold winter and disruptions to supply channels.
The Adelaide-based company reported sales revenue of $1.14 billion for the quarter, higher than $797 million last year and beating the consensus estimate of $1.07 billion.
Santos in early September sealed an agreement to buy Oil Search to create a global top 20 oil and gas company.
"I'm very happy with how the merger is progressing, and particularly acknowledge the positive comments from PNG (Papua New Guinea) Prime Minister Hon. James Marape," Chief Executive Officer Kevin Gallagher said in a statement.
Santos said its average realised LNG price rose to $10.4 per metric million British thermal unit (mmBtu) in the three months to September, from $7.52/mmBtu in the previous quarter.
