Santos continues to tackle Australia’s decommissioning challenge, providing an update on both spending and activity during the third quarter period of 2026.
Total capital expenditure in the third quarter comprised $437mn of sustaining capital —including $78mn for decommissioning costs — and $74mn for major development projects, the company noted in the Q3 statement.
In Western Australia, the Mutineer Exeter Fletcher Finucane (MEFF) subsea asset removal campaign also continued, it added in the report.
It demonstrates both deep financial commitment to decommissioning, while the MEFF campaign provides a tangible example of work being undertaken on the ground.
The latest update adds fresh context to previous comments from the company, in which it has stated that its Australian domestic oil and gas business is being repositioned to focus on meeting domestic gas and decommissioning commitments.
This was outlined in a May 2026 Investor Briefing Day, where Kevin Gallagher, managing director and CEO, cited “unprecedented market volatility and a changing policy landscape” in Australia.
“Our Australian domestic oil and gas business will be repurposed into a lower capital-intensity and higher-margin business focused on meeting our domestic gas and decommissioning commitments,” he said at the time.
In the face of rising market challenges and decommissioning responsibilities, output continues to climb.
During the Q3 period, Santos reported record quarterly production of 26.3 mmboe, up almost 14% on the prior quarter, while year-to-date output of 71.9 mmboe is almost 10% higher than the prior corresponding period.
Gallagher said the quarter delivered the step-change in production and cash flow that Santos had been working towards, and promised more to come in Q4 as Barossa continues its journey to high reliability and Pikka, a project in Alaska, gets a full quarter online.
