Santos raises production as Barossa nears steady state and Pikka ramps up

Santos reported a 3% quarter-on-quarter increase in production to 23.1 million boe as its Barossa and Pikka Phase 1 developments moved further into their operating ramp-ups.

Barossa was producing at 97% of planned rates, with two project cargoes loaded near the end of the quarter and cargoes subsequently running at a cadence of approximately eight days. Initial Pikka wells were delivering gross production of about 23,000 barrels per day. Santos expects seawater injection and additional wells to enter service in the coming weeks and is targeting gross plateau production of approximately 80,000 barrels per day during the third quarter.

The company narrowed its full-year production guidance to 99 million-105 million boe and expects second-half production to be 20%-30% above the first half. Second-quarter sales revenue increased 6% sequentially to $1.35 billion, while first-half operating free cash flow was about $378 million. Santos said commissioning costs and the timing of cargo receipts weighed on first-half cash generation.

In Papua New Guinea, Santos reached final investment decisions on the Agogo Production Facility tie-in and a PNG LNG oil infill drilling campaign. Agogo is targeting first gas in the second quarter of 2028, while infill drilling is scheduled to begin in the fourth quarter of 2026. Papua LNG remained on course for a potential investment decision in the fourth quarter, subject to the remaining development process.

The report also highlighted approval for a two-well Beetaloo Basin appraisal campaign and a 10-year gas sales agreement with the South Australian Government. A roughly $200 million prepayment under that agreement is intended to support the Moomba Central Optimisation project.