Santos adjusts its 2025 production forecast in response to the Cooper Basin Floods
Santos, Australia's largest oil and gas company, tightened its production forecast for the full year on Thursday in order to take into account flood-related disruptions. It also reported a decline of more than 2% in its second-quarter revenue.
In 2025, the country's second largest gas producer is expected to produce 90 million to 95 million barrels equivalent oil (mmboe), compared with an earlier forecast of 90-97 million mmboe.
Kevin Gallagher, the Chief executive officer of South Australia's Cooper Basin said that flooding submerged over 200 wells, causing a 15% drop in production.
Santos announced on Thursday that a production recovery was underway, and it is expected to accelerate in the second half of this year with the receding floodwaters.
The Adelaide-based firm reported quarterly sales revenues of $1.29 Billion, down from $1.31 Billion a year ago but above Visible Alpha's estimate of $1.23 Billion.
Santos reported that lower crude and condensate price impacted revenue.
Brent crude prices fell by 9.5% during the second quarter, as the OPEC+ group increased production in April and the uncertainty over U.S. Tariffs continued.
The quarterly sales volume, however, increased to 23.9 mmboe, up from 23.2 mmboe in the previous year. This was due to stronger gas sales from Western Australia, and an additional crude lift from the Pyrenees Project.
Santos reported that the Barossa project for liquefied gas was 97% completed and on schedule to deliver first gas by the third quarter. The Pikka oil projects in Alaska were 89% complete with the first oil expected in mid-2026.
Gallagher stated that "together, these projects will deliver around a 30 percent increase in production by the year 2027."
(Reporting by Adwitiya Srivastava and Sneha Kumar in Bengaluru; Editing by Shilpa Majumdar and Subhranshu Sahu) Reporting by Adwitiya Shrivastava in Bengaluru and Sneha Kumra; editing by Shilpa Majumdar, Subhranshu sahu
(source: Reuters)
