(Adds background, fiscal 2018 forecast, paragraph 4-10) Nov 9...

(Adds background, fiscal 2018 forecast, paragraph 4-10)

Nov 9 (Reuters) - Australia's Santos Ltd (STO) said on Thursday it aimed to cut its debt to $2 billion by 2019 and that it expected its full year production to be in the upper limit of its previously stated forecast.

Santos, which is in a turnaround phase, had said last December that it would cut net debt to less than $3 billion by the end of 2019 by increasing operating cash flow and selling non-core assets and infrastructure.

Last month, the company raised its production forecast range for 2017 to between 58 million and 60 million barrels of oil equivalent (mmboe), from earlier guidance of 57 million to 60 million mmboe.

The company also said it expected its fiscal 2018 production forecast to range between 55 million mmboe to 60 million mmboe with drilling activity in Cooper Basin and GLNG set to increase, ensuring greater supply to Australia's domestic market.

Santos also forecast a 2018 sales volume range of 72-78 mmboe, lower than the fiscal 2017 guidance range of 79-82 mmboe, as the company said it expected lower third party gas sales volumes and lower non-core asset volumes.

In 2018, Santos expects to maintain capital expenditure between $825 million and $875 million and a break-even cash flow.

The oil and gas producer's production forecast for its Gladstone LNG (GLNG) plant is unchanged at 6 million tonnes per annum by the end of 2019 and while saying its Cooper Basin development is expected to drill and 70 to 80 wells in 2018.

Gladstone's production outlook is well below the plant's full capacity of 7.8 million tonnes a year, with the company under pressure to deliver more gas into the domestic market to avoid export restrictions.

Santos Chief Executive Kevin Gallagher also said Santos executed agreements with APLNG to free-up more Cooper Basin gas for the Southern domestic market.

Late September, Australia's three east coast LNG plants, including Santos, staved off threatened export curbs after promising to plug a projected domestic gas supply shortfall in 2018, after being blamed for sapping the local market of gas and driving up prices.