Oil and gas producer Santos has revised its production guidance for 2025, primarily due to a technical issue at its Barossa gas project, located in the Timor Sea.
Oil and gas producer Santos has revised its production guidance for 2025, primarily due to a technical issue at its Barossa gas project, located in the Timor Sea.
Kevin Gallagher-led Santos told the market on Thursday that software issues – which have since been rectified – impacted ramp-up activities at the project.
"Software issues affecting the safety systems onboard the BW Opal FPSO resulted in an unplanned shutdown of around two weeks during September, impacting the ramp-up of the Barossa project,” he said.
"Pleasingly, these issues have now been resolved and are behind us.
"Safety will always take precedence over schedule as we work to achieve our ambition of a safe, high-reliability operation for many years to come.
"Following resolution of these software issues, first gas from Barossa into the gas export pipeline was achieved this week, with first production at Darwin LNG expected in the coming weeks."
Santos' revised production volumes guidance is now 89-91 million barrels of oil equivalent, down from 90-95 mmboe, while its sales volume was reduced from 92-99 mmboe to 93-95 mmboe.
Throughout its third quarter, Santos' overall production dipped by 4 per cent to 21.3 mmboe, while sales volume regressed by 10 per cent to 21.5 mmboe.
Revenue hit US$1.13 billion, down 12 per cent from the June 2025 quarter.
Despite this period, Mr Gallagher said he was confident the tide will turn.
"Santos has a clear strategy, a high-reliability, low-cost operating culture and significant growth optionality across our global portfolio," he said.
"I am confident that with the discipline of our capital allocation framework, Santos will be well positioned over the next few years to deliver sustainable results and strong returns for our shareholders."
As of 8.41am AWST, Santos shares were trading relatively flat at $6.34.
