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Santos, the Australian oil and gas company, reported slightly higher Q4 production but revealed a delayed expected first gas from its Barossa project to Q3 2025. This delay follows legal issues that paused the development of the field in Australia’s Timor Sea.
Q4 production of 23.4 million barrels of oil equivalent (boe) was slightly higher than Q3, primarily due to increased sales gas production. However, this figure was below the 25.6 million boe reported in the year-earlier quarter. The full-year production totaled 92.2 million boe, at the top end of its 89 million to 93 million boe guidance. Notably, the company produced 103.2 million boe in FY 2022.
The Barossa project is now expected to require an additional US$200 million to $300 million in capital spending, bringing the total cost of the field designed to feed the Darwin LNG plant to $4.5 billion to $4.6 billion.
Santos stated that the Barossa project is now 66% complete and that drilling had resumed following the approval of a revised environment plan. Additionally, one third of the project’s gas export pipeline has been installed so far, noting that an injunction recently was lifted following a legal challenge.
The company also provided an update on its 80,000 barrels per day, 51%-owned Pikka project in Alaska, stating that it was 37% complete as of year-end 2023, progressing on time and on budget.
Santos has set FY 2024 production guidance of 84 million to 90 million boe, with sales volumes guidance of 87 million to 93 million boe, and planned major project capital expenditure of $1.6 billion.
