SYDNEY - [AAP] Oil and gas producer Santos (ASX: STO) has lifted full-year revenue 20 per cent to $US3.1 billion ($A3.88 billion), with higher prices offsetting falls in production and sales volume.

The energy producer on Wednesday said fourth-quarter production was flat at 15 million barrels of oil equivalent, but that a 27 per cent rise in average realised prices over the period lifted revenue nine per cent to $US861 million.

Production for the 12 months to December 31 fell three per cent to 59.5 mmboe, and sales volume fell one per cent to 83.4 mmboe, but still beat guidance of 79-82 mmboe.

But full-year average realised prices rose 25 per cent to $US57.90 and Santos reduced debt by 23 per cent to $US2.7 billion.

It aims to reduce debt to $2 billion by the end of 2019.

"In 2017, our turnaround strategy to deliver a low-cost, reliable and high-performance business progressed ahead of expectations," managing director and chief executive Kevin Gallagher said.

"Santos is now a stronger, more resilient company with the capacity to execute and bring on-line growth opportunities across its core long-life natural gas assets."

The company reiterated its 2018 production guidance of between 55 and 60 mmboe, with sales guidance of between 72 and 78 mmboe.

Santos shares rose 13.5 cents, or 2.6 per cent, to $5.315 by 1050 AEDT.

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