Australia's Santos trims 2026 output forecast on Alaska oilfield delays
Santos narrowed its 2026 production forecast to 99 million-102 million barrels of oil equivalent from 99 million-105 million, citing delays and disruptions at its Pikka project. Third-quarter revenue rose 78% to $2.01 billion, while production climbed 23% to a record 26.3 million barrels of oil equivalent.
1. Forecast narrowed
Santos now expects 2026 production of 99 million to 102 million barrels of oil equivalent, down from its previous forecast of 99 million to 105 million. Its sales volume forecast was narrowed to 102 million to 105 million barrels of oil equivalent from 102 million to 108 million.
2. Project disruptions
Santos said delays commissioning a seawater treatment plant at its Pikka oil project in Alaska, weather-related output curtailments and a shutdown of the Kuparuk pipeline after a road accident affected its outlook. Pikka output will be held at around 70,000 barrels per day for a short period before ramping up toward 80,000 barrels per day.
3. Quarterly results
Third-quarter sales revenue rose to $2.01 billion from $1.13 billion a year earlier, matching Visible Alpha estimates. Production climbed 23% to a record 26.3 million barrels of oil equivalent, supported by steady production at the Barossa LNG project in Australia and rising output at Pikka. Higher realised LNG prices and increased Barossa sales volumes also benefited revenue.
