Santos Sees Strong Operational Performance Amid Challenges in Q2 Report

Santos Ltd., an Australian oil and gas company, has released its second-quarter report, which includes updates on two major projects: Pikka Phase 1 in Alaska's North Slope and Barossa in Australia.

The Pikka project is progressing towards a production plateau of 80,000 barrels of oil per day, with the initial set of production wells currently online delivering around 23,000 bpd. Water injection for reservoir pressure support and additional production wells are expected to come online in the coming weeks, paving the way for plateau production by the third quarter of 2026.

The Barossa gas project in Australia is now producing at 97% of planned rates, with two project cargoes loaded towards the end of the quarter. The company's capital expenditure was 20% below first-half 2025 levels due to a transition from major project development to commissioning and operations.

Santos Managing Director and Chief Executive Officer Kevin Gallagher stated that the second quarter demonstrated strong operational performance, resulting in production growth and disciplined capital allocation. However, the company faced challenges during the final stages of commissioning and ramp-up at both projects, which delayed the transition to a higher production and cash flow-generating portfolio until the second half of 2023.