Australia’s energy player Santos has disclosed a timeline for a production increase following a restart of output from a floating production, storage, and offloading (FPSO) vessel deployed at its gas project off the coast of Australia’s Northern Territory.

Santos reported a production boost of 22.5 million barrels of oil (boe) in Q1 2026, up 1% on the prior quarter and 3% on the corresponding period in 2025, as Barossa achieved its first cargoes. The Barossa FPSO is now expected to begin ramping up production in the next week as the firm completes the flushing and cleaning of heat exchanger trains.  

During this recent shutdown, the dry gas compressor seals have been replaced to allow full production rates once the unit is back online. The company underlines that LNG production is anticipated to start a few days after BW Offshore’s FPSO BW Opal is back online.

The initial LNG production began after the completion of the Darwin LNG life extension project and the cool-down of the LNG train and storage tank. The FPSO, which is situated at the Barossa gas field, approximately 285 kilometers offshore Darwin in the Northern Territory of Australia, is expected to feed the Darwin LNG plant for the next two decades.

Kevin Gallagher, Santos’ Managing Director and Chief Executive Officer, commented: “The Barossa project has had a few challenges during commissioning.  Pleasingly, we have now replaced the dry gas seals on the compressors and the FPSO is expected to commence ramping up as we complete the flushing and cleaning of the heat exchanger trains.”

Santos has reported strong operational performance and appraisal success, with PNG LNG maintaining high-plant reliability of more than 98%, delivering an annual run rate of around 8.6 mtpa. GLNG delivered stable upstream production, with LNG production at an annual run rate of 5.8 mtpa and 24 contracted cargoes shipped during the quarter.

The final investment decision (FID) on the Moomba Central Optimisation project, targeting over $600 million in capital and operating cost savings over the life of the Central fields by moving to more efficient, modern infrastructure, improving productivity, and delivering an expected IRR of more than 15%.

The firm secured a ten-year, 200 petajoule conditional gas sales agreement with the South Australian government, including a pre-pay that supports the firm’s investment in the Moomba Central Optimisation project.  

Gallagher emphasized: “Our portfolio of high-quality LNG assets, located close to Asian markets, is well positioned to meet strong and growing LNG demand across this region.

“Santos also continues to play an important role in supporting domestic energy security and economic development in Australia, including working constructively with industry partners and governments to help maintain stable fuel supply during a period of global market disruption.”

Power Your Brand With Offshore Energy ⤵️

Take the spotlight and anchor your brand in the heart of the offshore world!

Join us for a bigger impact and amplify your presence at the core hub of the offshore energy community!