Santos Sees Production Surge on Barossa, Pikka Ramp-Up

Australian oil and gas producer Santos reported a better-than-expected first-half profit despite a year-on-year decline. The company's underlying profit fell to $397 million from $508 million a year earlier, while net profit after tax declined to $355 million from $439 million.

The start-up of Barossa LNG and Pikka led to higher costs offsetting increased production and stable revenue. First-half production rose 3% year over year to 45.6 million barrels of oil equivalent. The company expects production in the second half to be 20% to 30% higher than in the first half as Barossa and Pikka move toward steady-state output.

Santos maintained its full-year production guidance of 99 million to 105 million boe. In Alaska, the Pikka Phase 1 project achieved first oil in May and continuous production in June. Output was around 23,000 barrels per day gross at the end of the first half, while Santos lifted the project's first 450,000-barrel crude cargo in August.