Santos lifts oil production by 1% in Q1 despite lower sales volumes
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The news: Santos has increased its total production to 22.5 million barrels of oil equivalent (mmboe) in the first quarter, a 3% rise on the previous corresponding period in 2025, as its Barossa floating storage and offloading facility (FPSO) prepares to ramp up output next week.
The numbers: The company has reported sales revenue of around USD1.27 billion ($1.78 billion) for the first quarter, representing a 3% increase on the prior quarter. However, revenue year to date remained at USD23 million, or 2% below 2025 levels.
Total sales volume for the quarter was 24.2 mmboe, down from 24.8 mmboe in the prior quarter. Own-product sales of 20 mmboe were also lower than the previous quarter.
Free cashflow from operations remained steady at around USD383 million, and full year 2026 guidance remains unchanged.
The context: Santos stated that the ramp up in oil production during the first quarter was driven by the commencement of the FPSO production, noting that dry gas compressor seals have now been replaced to allow for full production rates once the facility returns online.
However, the company said own-production sales during the period were lower due to weaker sales from Varanus Island following cyclone activity, as well as lower LNG and liquid sales from PNG due to the timing of cargo liftings.
The source: ASX
