Key facts
- Pikka oil project delays were caused by bad weather and a pipeline disruption.
- Output at Pikka will be held at around 70,000 barrels per day before ramping up.
- Third-quarter revenue matched estimates compiled by Visible Alpha.
Australia's second-largest independent oil and gas producer, Santos, on Thursday narrowed its 2026 production forecast due to delays at its Pikka oil project in Alaska. The company now expects 2026 production of 99 million to 102 million barrels of oil equivalent (mmboe), down from a previous projection of 99 to 105 mmboe. The sales volume forecast was also narrowed to 102 to 105 mmboe from 102 to 108 mmboe.
Delays at Pikka were attributed to bad weather, a pipeline disruption, and issues with commissioning a seawater treatment plant. Output at Pikka will be temporarily held at around 70,000 barrels per day before aiming for 80,000 barrels per day.
Despite the production forecast revision, Santos reported a 78% jump in third-quarter revenue to $2.01 billion, matching estimates. This increase was driven by strong performance from its Barossa LNG project, which reached steady production, and higher realized LNG prices.