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Santos reported record third-quarter production of 26.3 million barrels of oil equivalent (mmboe), up 13.9% from the June quarter and 23% from the same quarter in 2025. Sales volumes were 26.4 mmboe, 10.9% above the prior quarter. The company’s 22 October report attributes the increase chiefly to Barossa reaching steady production and the ramp-up of oil output at Pikka in Alaska. These are company-reported operating results for the quarter ended 30 September, not independently audited annual results.
The production growth was accompanied by higher revenue. Santos reported sales revenue of US$2.006 billion, up 48.7% quarter on quarter and 77.7% from the third quarter of 2025. LNG revenue was US$1.363 billion, while domestic sales gas generated US$292 million. The company said the quarterly revenue increase was largely driven by higher realised LNG prices, greater LNG sales volumes from Barossa and higher crude oil and condensate sales. Revenue movement therefore reflects both prices and volumes; it should not be read as a pure measure of production growth.
At Barossa, Santos said production was steady during the quarter and feed gas to Darwin LNG reached a new peak of about 600 million standard cubic feet per day. Darwin LNG operated at 98.5% reliability, and ten LNG cargoes and two condensate cargoes were lifted. The company said the first Barossa LNG cargo was lifted in August. Those milestones describe start-up and operating performance at a new supply source. They do not by themselves establish how the project will perform over a full year or across future maintenance cycles.
Pikka, Santos’ Alaska oil project, reached instantaneous production rates above 80,000 barrels per day gross before quarter-end; gross output was 69,000 barrels per day at the end of September. The report records two temporary curtailments: a weather event affected the seawater treatment plant while it was in start-up, and a road accident led the Kuparuk pipeline operator to shut the line. Santos said production was planned to be held near 70,000 barrels per day for a short period to allow water injection to replenish reservoir voidage, followed by a ramp toward 80,000 barrels per day. That is a reservoir-management plan, not evidence that the target rate has been sustained.
The company also described activity across its established portfolio. PNG LNG shipped 30 cargoes during the quarter and maintained high plant reliability; GLNG upstream production averaged 697 terajoules a day gross, with 22 contracted LNG cargoes shipped. At the Moomba carbon capture and storage facility in South Australia, Santos reported that more than 2.5 million tonnes of carbon-dioxide equivalent had been stored since operations began in September 2024. These operational disclosures cover separate assets and units, so their totals should not be combined as if they were one field or one production series.
Santos narrowed its 2026 production guidance to 99–102 mmboe, from a prior range of 99–105 mmboe. Guidance is management’s outlook, not a reported result. The company linked its growth outlook to Barossa and Pikka but also described near-term constraints and decisions, including Pikka’s planned temporary curtailment and reservoir management. It said the Beetaloo Jibera South 1 appraisal well’s Velkerri C shale results were better than expected, while the A and B shales were in line with pre-drill expectations; further logging and a horizontal production hole were planned. These are early appraisal observations and work plans, not a commercial reserve declaration.
Commercial agreements announced in the report also remain conditional. Santos and GLNG partners signed binding agreements to acquire the Greater Meridian coal-seam-gas project in Queensland, subject to regulatory approvals and customary consents. Santos expects to become operator with a 30% interest if the transaction completes, targeted for late 2026. Separately, the company agreed to acquire an additional 3.3% interest in Papua LNG, conditional on approvals and a final investment decision. The quarter’s reported results show higher production and sales as new capacity came online; whether those gains persist depends on project reliability, reservoir performance, market conditions and completion of proposed transactions.