Santos has cut its guidance for full-year output after technical hitches delayed the start of two major growth projects in the Timor Sea and Alaska, pushing out a long-forecast jump in output into the December half.
Production this year is now expected to be between 99 million and 105 million barrels of oil and gas, down from an earlier range of 101 million to 111 million barrels, Santos said on Thursday. The reduction in guidance is 3.8 per cent based on the mid-point of the ranges.
Santos shares were 0.3 per cent softer at $7.82 by late afternoon trading on Thursday following the update.
The country’s second-largest oil and gas producer has long touted 2026 as a transformative year for the company as both the Barossa gas project in the Timor Sea, north of Australia, and the Pikka oil project in Alaska come online, boosting production after several years of heavy capital spending that has crimped shareholder returns.
Yet both encountered technical issues during commissioning, slowing their ramp-up. Barossa is now at 97 per cent of planned production rates.
Source: https://www.afr.com/companies/energy/santos-trims-output-guidance-as-project-hiccups-delay-surge-20260723-p60hse