Santos gives projects update

Australian oil and gas developer, Santos Ltd has reported that its Barossa gas project is almost 80% complete with first gas expected in the third quarter of 2025.

A gas export pipeline to deliver gas from the field to Darwin LNG is now complete.

The third Barossa well has been successfully drilled and completed with better-than-expected reservoir results, Santos said.

In addition, the FPSO is on schedule to sail to Australia in the first quarter of next year.

For the first half of this year, Santos announced sales revenue of $2.711 bill, EBITDAX of $1.846 bill, an underlying profit of $654 mill, strong free cash flow from operations of $1.068 bill and a record interim dividend of S13 cents per share (unfranked).

Managing Director and CEO, Kevin Gallagher claimed that? Santos had delivered strong cash returns from its operating business as a result of its high-performance culture, disciplined low-cost operating model and consistently prioritising safe and reliable operations.

“Today’s results demonstrate the capability of Santos to generate strong cash flow from operations, deliver significant progress on major projects and deliver competitive, reliable shareholder returns.?

“The disciplined low-cost operating model underpins our business, and we continue to manage our cost base to be resilient through all scenarios and price cycles.?

“We remain focused on delivering our major growth projects with Moomba carbon capture and storage (CCS) phase one in the final stages of commissioning, Barossa is on schedule to come online within the next year and Pikka in 1H26.

“Our base business continues to deliver record reliability in PNG, the Angore wells are on track to come online later this year, Queensland coal seam gas is achieving record production rates, and in Western Australia, we have safely and efficiently delivered a significant decommissioning programme in the first half.?

“The base business provides the foundation for reliable production and cash flows to support returns to our shareholders in accordance with our capital management framework.

He added: “Phase one of the Moomba CCS project is in advanced commissioning with the pipeline being pressured up and CO2 to be introduced into the system imminently.?

“The project remains on track for first injection and ramp up to full capacity this year. Phase one of Moomba CCS will be one of the lowest-cost CCS projects in the world and have capacity to permanently store up to 1.7 mill tonnes of carbon dioxide annually, making Moomba CCS a significant part of Australia’s journey to net-zero emissions.

“We’re excited with our progress and the outlook at Barossa with initial results from the third well showing excellent reservoir quality and thickness.

“At full production rates, Barossa is expected to add around 1.8 mill tonnes per annum to Santos’ expanding LNG portfolio.

“Phase one of the Pikka Project is almost 60% complete and first oil is expected in 1H26.?

“Santos continues to deliver on its strategy to backfill and sustain existing infrastructure by unlocking our adjacent large-scale upstream resource base, de-carbonising our operations through projects such as Moomba CCS and electrification, and developing low-carbon fuels such as e-methane and e-LNG as market demand evolves,” Gallagher concluded.