Santos has reported increased production volumes for the second quarter, primarily driven by robust performance in Western Australia. This offset disruptions caused by flooding in the Cooper Basin. The oil and gas group experienced a 1 per cent rise in second-quarter production, reaching 22.2 million barrels of oil equivalent (mmboe). Sales volumes also saw a 3 per cent increase, resulting in revenue of $US1.29 billion ($1.97 billion). Santos is an Australian energy company, focused on the exploration, development, production and marketing of oil and gas. They supply essential fuels to homes, businesses and major industries across Australia and Asia.
The revenue boost was supported by contributions from PNG LNG, record daily output from GLNG’s upstream fields, and a 15 per cent surge in Western Australian domestic gas. While the Cooper Basin floods impacted over 200 wells, Santos is actively recovering output, leading to adjustments in its full-year guidance. The company also confirmed its Barossa gas project remains on schedule for its first gas delivery this quarter. The BW Opal FPSO has been successfully hooked up, and final commissioning is currently underway. The major growth project is now 97 per cent complete.
Santos chief executive Kevin Gallagher highlighted that the company’s production and cash generation “reflects the strength of our diversified portfolio, disciplined operating model and execution excellence in our major development projects.” He added that strong execution has kept major development projects on schedule, with production growth imminent. The Pikka project has also made excellent progress, with all 120 miles of pipeline installed and is on track for first production in mid-2026.
Adding another layer to the story, Abu Dhabi National Oil Company’s international arm has launched a $36 billion takeover offer for Santos, proposing $8.89 per share to shareholders.
