Santos has announced a technical setback affecting the commencement of its $6.1 billion Barossa gas project in the Timor Sea. The issue, related to software problems impacting safety systems on a production vessel, led to a two-week shutdown in September and has slowed the project’s ramp-up. Santos is an Australian oil and gas exploration and production company. The company supplies natural gas to domestic markets and exports LNG to Asia and other regions.
Chief executive Kevin Gallagher stated that the software issues have since been resolved, and the first export cargo from the revamped Darwin LNG project, utilising gas from the Barossa field, is still anticipated this quarter. Despite this, the disruption has prompted Santos to revise its production guidance for the full year.
Santos now expects 2024 production to fall between 89 million and 91 million barrels of oil and gas equivalent. This is a reduction from the previous forecast of 90 million to 95 million barrels. The company has also lowered its full-year sales volume guidance to between 93 million and 95 million barrels, down from an earlier estimate as high as 99 million barrels.
In its September quarter report, Santos posted revenue of $US1.13 billion, a 12 per cent decrease compared to the June quarter. This decline was attributed to a 4 per cent dip in production during the period.
