Santos trims top of 2026 output guidance on Pikka disruptions
Santos narrowed its 2026 production guidance to 99–102 million boe after disruptions at its Pikka project in Alaska, while quarterly output hit a record.
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what happened
According to Dow Jones Newswires, Australia's Santos lowered the upper end of its annual production forecast. It now expects 99 million to 102 million barrels of oil equivalent over the 12 months through December, down from a previous ceiling of 105 million.
The cut follows two separate problems at the Pikka project in Alaska: a weather event delayed commissioning of the Seawater Treatment Plant, and a shutdown of the Kuparuk pipeline operator briefly halted output. CEO Kevin Gallagher described the temporary curtailment at Pikka as a deliberate reservoir management decision.
Meanwhile, Santos produced 26.3 million barrels of oil equivalent in the third quarter, a record for any quarter and nearly 14% above the second quarter. Sales volumes rose 11% to 26.4 million barrels, and sales revenue climbed 49% on the quarter to US$2.01 billion.
why it matters
For the broader market the story is modest: the lower guidance ceiling affects one producer, but strong quarterly growth shows the new Barossa and Pikka projects are ramping up. Investors will watch whether these assets run reliably in the fourth quarter.
market impact
Santos and Australian gas: lower guidance ceiling limits volume expectations, while record quarterly output supports the stock
tags
instruments
sources
- Santos Lowers Top End of Output Guidance Following Pikka Disruptions — Dow Jones Newswires, 21 October 2026 at 22:45 UTC
- Santos Lowers Top End of Output Guidance Following Pikka Disruptions — Dow Jones Newswires, 21 October 2026 at 23:00 UTC
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