Santos achieved a production of 26.3 million barrels of oil equivalent (MMboe) in the third quarter of this year, representing a 14 percent increase compared to the second quarter and a 23 percent increase compared to the same period last year. This achievement is particularly due to the Barossa gas project reaching stable production and the increased output from the Pikka oil field in Alaska.
Production Details and Forecasts
Annual production to date has reached 71.9 million barrels of oil equivalent, about 10 percent higher than the same period last year. Santos has also revised its production forecast for 2026 down to 99 to 102 million barrels of oil equivalent. Santos CEO Kevin Gallagher stated: "This is a milestone, and I expect to see an increase in production in the fourth quarter as well. The Barossa project is moving towards high reliability, and the Pikka field will soon be fully operational."
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Performance of Barossa and Pikka Projects
The Barossa project has currently achieved a production record of 600 million cubic feet per day (MMscf/d) in supplying gas to the Darwin LNG facility. This facility operated with a reliability of 98.5 percent in the third quarter, handling 10 LNG shipments and two condensate shipments.
At the Pikka field, seawater injection has begun, and the first oil shipment was loaded in August. So far, 32 development wells have been drilled. Gross production temporarily reached over 80,000 barrels per day (bpd) before the end of the quarter, but due to weather conditions and the closure of the Cooper pipeline, production declined to 69,000 barrels per day by the end of the quarter. Santos plans to maintain production around 70,000 barrels per day to refill water reserves and then increase it to 80,000 barrels per day.
Developments in the Beetaloo Sub-basin and New Projects
In the Beetaloo sub-basin, Santos drilled the Southern Giba 1 appraisal well to a total depth of 3,457 meters in October. The results obtained from the Valkyrie A and B layers matched pre-drilling expectations, and the Valkyrie C layer was better than expected. This information will aid in the simultaneous development of all three layers. After data collection is completed, drilling of a 3,000-meter horizontal well will commence.
Elsewhere, the Halyard 2 well on Waranus Island is producing about 85 terajoules daily and continues without water ingress. Construction of the Agogo production facility in Papua New Guinea has also begun.
Santos has also signed an agreement to purchase an additional 3.3 percent of the Papua LNG project from TotalEnergies, increasing its stake to 21 percent. This agreement is subject to regulatory approvals and final investment decisions planned for the fourth quarter. After the quarter ends, ExxonMobil was appointed as the operator of the upstream portion of this project. In Queensland, Santos and GLNG partners have agreed to acquire the Grater Meridian coal seam gas project, which is expected to operate as the operator in late 2026.
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