Santos Ltd expects to produce 101-111 million barrels of oil equivalent (MMboe) this year, compared to 87.7 MMboe in 2025, according to the Australian company’s quarterly report Thursday.
In the last three months of 2025 Santos’ output totaled 22.3 MMboe, up five percent quarter-on-quarter. Full-year production was up one percent from 2024, the Adelaide-based natural gas-focused producer said.
Santos said a project to unlock new gas for Darwin LNG in the Northern Territory through the Barossa field had been completed and that liquefied natural gas (LNG) production has restarted. “Following the end of the quarter, the first LNG cargo has been sold on a delivered ex-ship basis”, the quarterly report said. “The cargo is currently being loaded at Darwin LNG and will be delivered to the Sakai terminal in Japan”.
In the Cooper basin on the Australian east coast, production recovered to pre-flood levels. “Drilling activity continued uninterrupted in 2025, with 104 wells drilled for the full year despite flood-related disruptions, supporting a near-term increase in production compared to the previous quarters”, Santos said.
“Western Australia domestic gas production increased by approximately 19 percent compared to the prior quarter, following successful shutdowns in the third quarter at the Varanus Island and Macedon facilities, and implementation of the Varanus Island compression project phase 2, which developed around 24 MMboe of 2P [proven and probable] reserves”, it said.
In Alaska in the United States, phase 1 of the Pikka oilfield development was 98 percent complete, on track to start production this quarter, Santos said.
Managing director and chief executive Kevin Gallagher said, “The performance of the base business has been a real highlight in 2025 with strong production despite the impact of the biggest floods in the Cooper Basin since the 1970s”.
“Once at full rates, Barossa LNG and Pikka phase 1 together are expected to lift Santos’ production by around 25 to 30 percent by 2027 compared to 2024 levels”, Gallagher added.
Santos sold 24.8 MMboe in October-December 2025, up 15 percent quarter-over-quarter. Full-year sales totaled 93.5 MMboe, up two percent compared to 2024. For 2026, Santos forecast 101-111 MMboe in sales volume.
Quarterly sales revenue rose nine percent sequentially to $1.23 billion as the increase in sales volume offset a price drop across LNG, domestic gas, crude oil and condensate.
LNG accounted for $780 million of Q4 sales revenue with 1.44 million metric tons sold, up from 1.44 million metric tons in Q3.
Domestic gas contributed $268 million to Q4 sales revenue with 48.6 petajoules sold, up from 45.3 PJ in Q3.
Free cash flow from operations landed at $380 million for Q4, up 30 percent quarter-on-quarter.
“The fourth quarter lifted free cash flow for the full year to approximately $1.8 billion, a strong result in a year of relatively soft commodity prices for the industry, which demonstrates the value of our focus on margin in our marketing and trading activities”, Gallagher said.
To contact the author, email jov.onsat@rigzone.com
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