April 24, 2026 [Offshore Technology]- Santos has reported sales revenue of $1.27bn for the first quarter of 2026 (Q1 2026), reflecting a 2% decrease from the same period in 2025 but a 3% increase from the prior quarter.

The company achieved a production volume of 22.5 million barrels of oil equivalent (mboe), a 3% increase from the previous year and a 1% rise from the prior quarter, following delivery of the first cargoes from the Barossa Gas Project.

Free cash flow from operations was around $383m, consistent with the prior quarter.

Capital expenditure (capex) for the quarter was $441m, a 28% decrease compared to Q1 2025.

The company’s full-year 2026 guidance remains consistent, with projected production volumes ranging from 101 to 111mboe.

Sales volumes are also expected to be between 101 and 111mboe, and total capex is estimated at approximately $1.95bn–2.15bn.

In terms of segment performance, the PNG LNG project sustained high reliability, achieving an annual run rate of approximately 8.6 million tonnes per annum (mtpa), with plant reliability surpassing 98%.

The GLNG project reported stable upstream production, with an annual run rate of 5.8mtpa and 24 contracted cargoes shipped during the quarter.

The Roma field achieved record daily production of 226 terajoules per day and the Scotia development progressed, with ten wells drilled.

Arcadia achieved facility reliability above 99%, while Fairview production remained stable with 23 wells drilled during the quarter.

Santos’ Western Australia operations experienced disruptions due to Cyclone Narelle, impacting production across its facilities, although all gas facilities have since returned online.

Halyard-2 continues to perform strongly, having produced more than 80% of its initial estimated proved and probable, or 2P, reserves over 14 months with minimal decline and no water breakthrough.

The Pikka Phase 1 project in Alaska, US, reached mechanical completion, with commissioning activities under way.

The company said that 27 development wells have been drilled to date for Pikka Phase 1, with 20 wells stimulated and flowed back in line with pre-drill expectations.

Meanwhile, the Barossa liquefied natural gas (LNG) project in Australia is expected to start ramping up production shortly, with the floating storage and offloading facility (FPSO) preparing to come online. LNG production is expected to commence a few days after the FPSO is operational.

In Alaska, the completion of the Quokka-1 appraisal well confirmed a high-quality Nanushuk reservoir with approximately 143ft of net oil play, demonstrating average porosity of 19%. The well achieved a flow rate of 2,190 barrels of oil per day, supporting strong well performance and improved pricing relative to Pikka oil.

During the quarter, Santos secured a ten-year, 200-petajoule conditional gas sales agreement with the South Australian Government. This includes a pre-pay that supports Santos’ investment in the Moomba Central Optimisation project.

Additionally, the reported quarter saw a voluntary Indigenous Land Use Agreement authorised by the Gomeroi people for the Hunter Gas Pipeline and Narrabri Lateral Pipeline, supporting progress towards the development of the Narrabri Gas Project.

Santos said that it also played a role in supporting Australian domestic fuel security during a period of global market disruption, working with Viva Energy and Ampol to maintain stable fuel supplies to Australian refineries.

Santos managing director and CEO Kevin Gallagher said: “Our base business continues to perform reliably, supporting free cash flow generation.

“The Pikka Phase 1 oil project is now mechanically complete with commissioning activities progressing well and first sales oil expected in the coming weeks. The project is targeting plateau production early in Q3 2026.

“The Barossa project has had a few challenges during commissioning. Pleasingly, we have now replaced the dry gas seals on the compressors and the FPSO is expected to commence ramping up as we complete the flushing and cleaning of the heat exchanger trains.”