Industry News

• The Finocchiaro CLP Government is driving investment in the Territory with a new onshore petroleum acreage release in the Beetaloo Sub-basin five times the size of Singapore.

• The release is being promoted this week at the North American Prospect Expo (NAPE) in Houston, one of the world’s largest upstream energy investment events.

• Applications are now open across 50 full and part blocks, supporting domestic energy security, regional economic development and Territory jobs.

The Finocchiaro CLP Government is further boosting economic growth in the Territory through a new acreage release for onshore petroleum exploration.

The acreage is approximately 4,000 sqkm, more than five times the size of Singapore, and is strategically located near the Amadeus Gas Pipeline and the Stuart Highway within the highly prospective Beetaloo Sub-basin, one of Australia’s most significant onshore shale gas plays.

The announcement is being made this week to industry representatives at the North American Prospect Expo (NAPE) in Houston, Texas, held on 18–20 February 2026.

NAPE is the premier marketplace for the upstream energy sector, where companies buy, sell and trade tenure and producing assets.

The event attracts more than 8,000 senior decision-makers, investors, service providers and technology leaders from across the international energy industry.

Minister for Mining and Energy Gerard Maley said a high-level delegation from the Department of Mining and Energy would attend NAPE to promote the Beetaloo Sub-basin and the new acreage release, and engage directly with major oil and gas companies identified as potential future investors and operators.

“The Beetaloo has been recognised as the next big global shale play, and it is critical the Territory is seen and heard in an increasingly competitive international investment environment,” Mr Maley said.

“Texas is the leader of global shale gas development and home to the world’s most mature shale gas operations, advanced expertise and investor networks, so it is critical we are there promoting the release of this new acreage.”

The new acreage, EPNT26-1, will allow for a competitive bidding process under the Petroleum Act 1984.

The release area is surrounded by high quality shale gas acreage held by Tamboran Resources, Daly Waters Energy, Beetaloo Energy Australia and Santos, with the adjacent acreage EP98 expected to produce the first Beetaloo Gas for NT use from mid 2026.

“This release will unlock a strategically important gas resource, supporting domestic energy security, creating local jobs, and driving economic growth across the Barkly region,” Mr Maley said.

“This is about backing investment, backing industry and backing Territory jobs as part of our year of growth, certainty and security.”

Applications and submissions are now invited over the 50 full and part blocks, with the application period closing at 4pm ACST on Friday, 31 July 2026.

More information, including the full geoscience data package, application form and guideline, is available on the Department of Mining and Energy’s website.

Source: Northern Territory Government Newsroom

Highlights:

• In January 2026, Mr. Todd Abbott was appointed Chief Executive Officer (CEO) of Tamboran Resources Corporation. Mr. Abbott brings over two decades of upstream experience with a strong record of operational leadership, capital discipline, safety and stewardship.
• In October 2025, Tamboran, on behalf of the Beetaloo Joint Venture (BJV), successfully completed the first batch drilling program in the Beetaloo Basin with the Shenandoah South 4H (SS-4H), -5H and -6H wells all successfully drilled and cemented with 10,000-foot horizontal sections in the Mid Velkerri B shale.
• In December 2025, stimulation activities on the SS-6H well comprising 58 stages across a 10,009-foot (~3,050-metre) length was completed.
• Strong progress was made on the construction of the Sturt Plateau Compression Facility (SPCF). The project was 78% completed at the end of January 2026. The SPCF construction remains on budget and on track to commence commissioning in 3Q 2026, subject to weather conditions.
• The construction of the APA Group (ASX: APA) owned Sturt Plateau Pipeline (SPP) was completed during the quarter. The pipeline successfully passed pressure and hydro testing in January 2026 and is expected to be tied into the Amadeus Gas Pipeline imminently.
• During the quarter, Tamboran raised US$67.4 million via a US$56.1 million public offer (before fees) at US$21.00 per share of Common Stock and an US$11.3 million Share Purchase Plan (SPP). The Public Offer was supported by leading energy technology company and new strategic partner, Baker Hughes.
• In January 2026, Tamboran shareholders voted to approve a US$32.0 million Private Investment in Public Equity (PIPE) transaction. The PIPE transaction was completed in January 2026 and was supported by Mr. Bryan Sheffield, Tamboran’s Board and management, and existing shareholders.
• As of December 31, 2025, the Company had a cash balance of US$90.9 million (including TBN’s 50% share of US$15 million in restricted cash) and drawn debt of US$16.3 million associated with the construction of the SPCF. Total undrawn debt of US$42 million for the completion of the SPCF (net Tamboran).
• Tamboran received US$32 million following completion of the PIPE in January 2026 and expects to receive US$15 million relating to the acreage sale to DWE during 2026.

Tamboran Resources Corporation Chief Executive Officer, Todd Abbott, said: “I am extremely excited for the opportunity to lead Tamboran into what I believe is going to be a period of significant growth for the Company. The year is shaping up to be Tamboran’s most active year in the Beetaloo Basin, with the Company participating in more than five well stimulations and the drilling of more than four wells across both the Beetaloo East and West depocenters.

Importantly, we are tracking towards first gas sales from the Beetaloo Basin during 3Q 2026 with the team actively progressing construction activities on the SPCF and SPP, both of which remain on schedule and budget. This will be a significant milestone for the Northern Territory, given it will provide initial royalties for Native Title Holders and the NT Government and energy security to Territorians.

We thank our shareholders for their support in the recent capital raise, which leaves Tamboran well-funded to deliver first gas from the SS Pilot Project in 3Q 2026.”

Source: Tamboran Resources Corporation ASX Announcment

• Payroll tax reform introduced last year is bolstering the Territory economy
• Small and medium businesses are taking on more staff and government payroll tax revenue has increased
• Reforms are part of the CLP’s vision to make the Territory the most competitive place to live, work, visit and invest

One year on from the passage of the Finocchiaro CLP Government’s nation-leading payroll tax reforms, the Territory’s economy continues to strengthen, with small and medium businesses benefiting from the conditions needed to grow, invest and create local jobs.

As part of the Payroll Tax Amendment Act, from 1 January 2025, the CLP Government waived payroll tax for Northern Territory employers with taxable wages of up to $2.5 million in 2024-25 – delivering Territorian businesses the highest payroll tax-free threshold in Australia.

Payroll tax exemptions were also provided for wages paid to 3,700 trainees and apprentices, encouraging more local employers to invest in the future of the Northern Territory workforce.

Treasurer Bill Yan said that in the government’s year of growth, certainty and security, rebuilding the economy and supporting small and medium businesses through payroll tax exemptions remains a central pillar of the CLP’s Rebuilding the Economy Strategy.

“We listened to businesses and they told us loud and clear the Territory payroll tax system was holding them back, so we reformed it,” he said. 

He said the payroll tax exemption were seeing real results on the ground. 

“Since we increased the tax-free threshold from $1.5 million to $2.5 million from 1 July 2025, we’ve seen more than 200 businesses see their bottom line improve by an average of $22,000 per business which are huge savings,” he said. 

He said the reforms gave businesses more incentives to take on the next generation of Territory workers. 

“There’s nearly 100 businesses who are now saving nearly $10,000 each in payroll tax employing apprentices and trainees,” he said. 

“That’s a million dollars extra supporting Territorians taking their first steps in the workplace.”

Treasurer Yan said the despite the exemptions, the NT Government saw an increase in payroll tax revenue due to economic growth and businesses taking on staff.

In December 2025, payroll tax collections for 2025-26 totalled $170 million, exceeding the year-to-date forecast by 14% led by the mining, real estate, transport and health care sectors. 

“These numbers show beyond all doubt the CLP Government is putting the Territory on the right path of economic growth by helping small and medium businesses by cutting red tape and reducing their tax burden,” he said. 

“And this gives them additional capital they can use to invest and grow their business,” 

Anthony Reiter, General Manager of DeltaNAE, said the payroll tax waiver was key to helping him attract staff from interstate and consider more apprentices. 

“We’ve been able to increase the rates of pay and encourage a highly skilled workforce to improve the capacity of our business in the Territory,” he said.  

“It’s made a great difference to us and taking apprentices out of the payroll tax equation frees us up with more dollars to seek highly experienced people to bring back into Darwin,” 

“This gives us the confidence to get out there and find the people we need to get the work done.” 

Treasurer Bill Yan said the reforms are part of the CLP’s vision to make the Territory the most competitive place to live, work, visit and invest. 

“2025 was our year of action and laying down the foundations to support Territorians. 2026 is about growing the Territory and continuing the momentum forward," he said. 

“The beating heart of NT economy are small and medium businesses and we continue to work hard supporting them to grow a bigger and better workforce,” 

Source: Northern Territory Government Newsroom

• Finocchiaro CLP Government removed red-tape for electricians and laws introduced this week will make the change permanent.
• Tradies and business owners will spend less time on paperwork and more time growing their businesses and employing Territorians.
• Nominations now open for the Electrical Safety Board.

Territory tradies can expect less paperwork, more time on the job, and greater certainty for their businesses as the Finocchiaro CLP Government introduces laws to permanently remove unnecessary paperwork for low-risk electrical work. 
 
The reform amends the Electrical Safety Act to exempt certain low-risk, like-for-like electrical work from requiring a Certificate of Compliance. Routine tasks such as replacing light fittings or appliances where there is no change to wiring, load or circuit protection will no longer require additional paperwork.
 
This change ensures safety requirements remain strong, while allowing NT WorkSafe to focus on compliance and enforcement in higher-risk electrical work - where it matters most.
 
Attorney-General,  Marie-Clare Boothby said the legislation delivers a sensible balance between safety and practicality.
 
“We want small and family businesses to be able to spend more time working on growing their business and employing Territorians and less time navigating red tape,” she said. “We’re removing red tape that did nothing to improve safety, never made sense for the Territory, and which only increased costs, delays, and frustration for electricians, businesses and Territory households.”
 
“After eight years under Labor, the Territory economy was going backwards, and businesses now have certainty to boost productivity with the CLP government backing Territory tradies.”
 
“In our year of growth, certainty, and security we are committed to making the Territory the best place to do business, and that includes for skilled trades and construction.”
 
Owner of AJF Electrical in Palmerston, Mr Allen Fanning, welcomed the reforms.
 
“It might sound like a basic change, but this saves us from wasting time on paperwork which does not make routine work like changing appliances, fans or power points any safer if safety switches are already installed,” he said.
 
“It means we can spend more time on the job and building our business, saving customers money too.”
 
The reform was identified through the Approvals Fast-Track Taskforce’s Saying Yes to Business report, which recommended reducing compliance requirements for low-risk, routine electrical work. An interim exemption commenced on 1 January 2026. This legislation makes that change permanent.
 
The Approvals Fast-Track Taskforce was established by the Finocchiaro CLP Government, to cut approval timeframes by 50% and remove unnecessary regulatory barriers which slowed down business and investment. These changes are part of a broader suite of improvements being delivered through NT WorkSafe in 2026, the government’s Year of Growth, Certainty and Security, focused on rebuild the Territory economy and on making the NT the best place to do business.
 
The Attorney-General also advised that nominations are now open for the NT Electrical Safety Board, which plays a key role in advising on electrical safety policy, regulation and disciplinary matters.
 
“If you have experience in the electrical industry, we want you involved in helping strengthen safety, productivity and opportunity for Territory tradies,” she said.
 
Nominations close on 1 March 2026. More information is available at www.worksafe.nt.gov.au/esb.

Source: Northern Territory Government Newsroom

• CLP cuts red tape to boost Territory business.
• Flexible multi‑year registrations better costs for agents.
• Higher association tiers ease compliance for community groups.

The Finocchiaro CLP Government’s Year of Growth, Certainty and Security continues, with Minister for Trade, Business and Asian Relations Robyn Cahill driving reforms that make it easier for businesses and incorporated associations to thrive in the Northern Territory.

Minister Cahill said the omnibus legislation passed by Parliament today delivers sensible, risk‑based regulatory reform that reduces unnecessary burdens while maintaining accountability.

“It is important that we have the right regulatory environment for associations and businesses to thrive.”

“We are applying a risk‑based approach to regulation, focusing on high‑risk activities and reducing requirements for low‑risk ones.”

“This necessary and sensible regulatory reform is cutting red tape and helping our licensees and incorporated associations get on with the job.”

“Over regulation is one of the greatest barriers to growth. By removing unnecessary administrative burdens, we are delivering on our vision of making the Territory the best place to do business.”

The reforms will benefit real estate agent representatives, incorporated associations, and a range of occupational licensees, modernising outdated requirements and streamlining processes.

These reforms represent one of the most significant overhauls of occupational licensing and association regulation in the Territory. Real estate agents’ representatives will save time and money with flexible 1, 3 and 5‑year registrations, including discounts of up to 10 percent, while maintaining continuity of service during renewals.

Incorporated associations — many of them small, volunteer‑run community groups — will see tier thresholds lifted six‑fold, reducing the need for costly professional audits and allowing more flexibility in financial reporting.

Modernised terminology and electronic communication provisions will streamline compliance across industries from real estate and plumbing to pawn broking, security, and tobacco retail, ensuring the Territory’s regulatory framework is fit for the future.

The Department of Trade, Business and Asian Relations will notify associations and licensees once the amendments come into effect.

For more information pertaining to the legislative changes please use the following links: Incorporated Associations and Real Estate Agent Businesses.

Source: Northern Territory Government Newsroom 

• The Finocchiaro CLP Government has declared the Northern Marine Complex a Territory Development Area, activating statutory powers for the first time to drive coordinated delivery of an economically significant precinct.
   
• The declaration positions Darwin’s Ship Lift and Marine Industry Park as a strategic maritime gateway supporting defence, international trade, energy and critical minerals supply chains.
   
• The TDA framework strengthens governance, coordination and cost control, ensuring taxpayer value, attracting private investment, and delivering skilled local jobs after years of Labor mismanagement.

In a Territory first, the Finocchiaro CLP Government has declared the Northern Marine Complex a Territory Development Area (TDA), activating the Territory Coordinator’s powers to drive the coordinated delivery of a major economic precinct.

The declaration marks a turning point for the area, shifting it from fragmented delivery to a clear, whole-of-government approach focused on unlocking long-term economic growth for the Northern Territory.

Located at East Arm, just minutes from Darwin’s CBD, the Northern Marine Complex spans 246 hectares, including both land and water. It brings together the Darwin Ship Lift and the Marine Industry Park into a single, integrated maritime precinct.

At its core is a 5,500-tonne capacity ship lift, supported by infrastructure that allows multiple vessels to be dry-docked at the same time. This capability enables Darwin to service defence, commercial and international vessels operating across northern Australia and the Indo-Pacific.

Surrounding the ship lift is a purpose-built industrial subdivision, with large-scale workshop and fabrication areas located just 600 metres from the lift, specifically designed to support marine maintenance, repair and fabrication activities.

The complex also includes a 10.3-hectare common-use hardstand, providing a secure and expansive area for fabrication, storage and maintenance operations, as well as a multi-user barge ramp offering all-tide access to ensure seamless vessel movement and logistics.

The Marine Industry Park anchors a northern marine industry ecosystem by concentrating marine trades, engineering, logistics and specialist services in one location. This co-location builds industrial scale, strengthens local capability, and ensures the activity generated by the ship lift is captured and grown in Darwin.

Together, these assets position Darwin as a competitive, full-service maritime hub capable of supporting defence, trade and industrial activity across the north and into the Indo-Pacific.

As Australia’s most northern deep-water harbour, the Northern Marine Complex is strategically located close to major international shipping routes and emerging opportunities linked to defence posture changes, gas development, critical minerals supply chains and increasing commercial vessel movements across the region.

Chief Minister and Minister for the Territory Coordinator, Lia Finocchiaro, said the declaration ensures a major public investment delivers real economic returns for Territorians.

“The Ship Lift is a major public investment, and Territorians rightly expect it to deliver. Developing an economically significant precinct will maximum the benefit of the Ship Lift to the entire maritime industry.” Mrs Finocchiaro said.

“Growth in the marine sector means more skilled local jobs, more Territory businesses in the supply chain, and even more reasons for defence to anchor itself in the Territory.

“That’s why, in our year of growth, certainty and security, we are taking strong action to rebuild our economy.”

In October 2025, the Public Accounts Committee delivered its findings into the Darwin Ship Lift Facility, identifying systemic coordination and accountability failures under Labor’s delivery of the project.

“During Labor’s eight-year tenure, taxpayers were left exposed to blowout after blowout as costs escalated through poor oversight,” Mrs Finocchiaro said.

Territory Coordinator Stuart Knowles said designation as a TDA provides the statutory framework to assess, facilitate and coordinate the delivery of developments of economic significance and to attract investment.  

“This declaration is a practical enabler,” Mr Knowles said.

“It supports a whole-of-government approach, stronger governance, cost discipline and coordination, ensuring taxpayer value is protected and delivery progresses.”

The designation of a TDA triggers the development of a TDA Plan, with full community consultation and input into the plan to occur, led by the Territory Coordinator.

The proposed Northern Marine Complex, at East Arm encompasses the Darwin Ship Lift and the Marine Industry Park and is critical to the Territory’s marine sector as a strategic growth engine, underpinned by Darwin’s geographic position in the Indo-Pacific as Australia’s northern maritime gateway.

For more information on the Territory Development Area, visit the website.

Source: Northern Territory Government Newsroom

• NT Government approved Beetaloo Energy’s Beneficial Use of Gas application for the sale of appraisal gas from EP187 
• Beetaloo Energy achieved a Final Investment Decision (FID) on the Carpentaria Pilot Project, with first gas sales from EP187 expected in late 2026 
• Civil works for the Carpentaria Gas Plant commenced in October 2025 and were completed in January 2026. Piling installation will commence in February followed by gas compressor transport to site in April 
• Carpentaria-5H (“C-5H”) achieved strong flow rates with enhanced permeability, underpinning long-term performance 
• Total liquidity at end of the Quarter was $24.8 million comprising $18.0 million in cash and $6.8 million of undrawn funding available under the Macquarie facilities. An additional $30 million under the Macquarie Midstream Infrastructure Facility is expected to become available now that FID has been reached 
• Beetaloo Energy intends to recommence the C-5H flow in late Q1/early Q2

“The December Quarter marked a significant step forward for Beetaloo Energy as the Company progressed toward pilot development and commercialisation. During the quarter, Federal Ministerial approval recognising Traditional Owner consent for the sale of appraisal gas was secured, followed immediately by NT Government approval of the Beneficial Use of Gas application, establishing a clear regulatory pathway to gas sales from EP187.

The Board approved the Final Investment Decision (FID) for the Carpentaria Pilot Project, with first gas sales from EP187 expected in 2026. This decision was supported by the strong performance of the Carpentaria5H well, which achieved one of the highest flow rates recorded in the Beetaloo Basin during flowback1 . Permeability observed across the Carpentaria region indicates higher permeability than previously assumed.

Beetaloo Energy enters the next quarter with key approvals in place, FID achieved, and a clear pathway toward pilot production.

I would like to thank the Beetaloo Energy team along with our partners for their outstanding efforts throughout the year, and our shareholders for their continued support and confidence in Beetaloo Energy. Your commitment and trust have been instrumental as we advance our projects, and I look forward to another year of progress and shared success” ⎯ Alex Underwood, Managing Director

Source: Beetaloo Energy Australia ASX Announcement

As the Finocchiaro CLP Government continues to deliver on its commitment to rebuild the Territory’s economy, Minister for Trade, Business and Asian Relations, Robyn Cahill, departed today to attend the invite‑only Baker Hughes Annual Meeting.

A major global energy technology company operating in over 120 countries and with some 57,000 employees, Baker Hughes’ annual meeting will run from 28 to 30 January 2026.

Already a key partner in Territory projects, in October 2025 Baker Hughes invested US$10 million in Tamboran Resources to support Beetaloo development and is advancing energy initiatives including SunCable. It has also identified the Barkly as a prime location for large‑scale data centres, positioning the Territory as a credible partner for resilient, low‑carbon digital infrastructure in Australia and the Asia‑Pacific.

Held in Italy, the Baker Hughes meeting brings together more than 2,000 global industry leaders and policymakers to discuss the future of energy and industry. As the only Australian jurisdiction invited to attend, participation in the event presents the Territory with an unprecedented opportunity to be showcased as a leading hub for energy and resources.

Minister Cahill said the Territory’s growing reputation as a competitive place to live, work, visit and invest, will be front and centre of all discussions.

“It is critical the magnitude of the transformational economic opportunity that is the Beetaloo Basin, is understood across the globe and this meeting will provide direct access to global investors and technology providers to promote global recognition of the Territory’s competitive resources and energy opportunities.”

“We have a strong track record in energy and resources, and this global platform allows us to demonstrate our capability, experience and long‑term potential,” Minister Cahill said.

“My message to attendees will be very clear. The Territory is the best place to do business. We are open to investment and industry development and the opportunities investment in the Beetaloo and projects like SunCable are significant.”

“The benefits of these projects will flow through to all Territorians through economic diversification, workforce opportunities, strengthening of local supply chains and building the infrastructure that will underpin our economic future.”

The estimated costs for the Minister are approximately $8,000, with final costs to be reported after the trip in line with standard reporting processes.

Source: Northern Territory Government Newsroom

Outstanding base business performance

• Free cash flow from operations of ~$380 million for the fourth quarter, up 30 per cent on the prior quarter, ~$1.8 billion for the full year.
• Free cash flow from operations breakeven price of less than $30/bbl for the full year.
• Production of 22.3 mmboe for the fourth quarter, up five per cent on the prior quarter, full year production 87.7 mmboe.
• Sales volumes of 24.8 mmboe for the fourth quarter, up 15 per cent on the prior quarter, full year sales volumes 93.5 mmboe.
• Sales revenue of more than $1.2 billion in the fourth quarter, up nine per cent on the prior quarter, full year sales revenue more than $4.9 billion.
• Full year unit production cost below $7/boe (excluding Bayu Undan) and within guidance.
• Gearing 26.8 per cent (21.5 per cent excluding operating leases), down 1.4 per cent from end of the prior quarter.

Barossa LNG – first LNG cargo loading underway

• The BW Opal FPSO continued start up and commissioning activities while ramping up gas export volumes, now at ~450 mmscf per day which is around 75 per cent of plant capacity. The six-well drilling program in the Barossa gas field was successfully completed and all six wells have been tested. All wells have intersected excellent reservoir quality with average individual well potential deliverability of ~300 mmscf per day.
• LNG production commenced following completion of the Darwin LNG life extension project and cool down of the LNG train and storage tank.
• Following the end of the quarter, the first LNG cargo has been sold on a delivered ex-ship (DES) basis. The cargo is currently being loaded at Darwin LNG and will be delivered to the Sakai terminal in Japan.

Pikka phase 1 – nearing mechanical completion

• Pikka phase 1 is 98 per cent complete and nearing mechanical completion, with commissioning progressing. Twenty-four wells were drilled and completed at the end of the fourth quarter. The 23rd well achieved the highest productivity to date, producing at an initial rate of approximately 8,000 bbl per day. The 24th well was the second combination well, developing two reservoir sections from the one well.
• As Pikka phase 1 nears first production, following the final cost and schedule review, capital expenditure for phase 1 has increased by approximately $200 million Santos share (less than 10 per cent of the total Pikka phase 1 project costs). The majority of this expenditure relates to facilities and has been incurred in 2025. Santos’ total 2025 capital expenditure remains at the lower end of original guidance, with the Pikka phase 1 cost increase offset by lower-than-planned capital expenditure elsewhere in the portfolio.
• The Pikka phase 1 increase reflects inflationary pressure on labour and materials across the North Slope, tariffs on production modules for the sea water treatment plant and logistics costs relating to the MacKenzie River transit.
• The project remains on track for first oil late in the first quarter of 2026, with ramp up to plateau expected around the middle of the year.

Operational excellence

• The PNG Hides F2 well was completed and a safe, accelerated start up commenced in the fourth quarter, with initial production rates averaging 60 mmscf per day.
• Western Australia domestic gas production increased by approximately 19 per cent compared to the prior quarter, following successful shutdowns in the third quarter at the Varanus Island and Macedon facilities, and implementation of the Varanus Island compression project phase 2, which developed around 24 mmboe of 2P reserves.
• Cooper Basin output recovered to pre-flood levels with 91 wells successfully returned to production in the fourth quarter. Drilling activity continued uninterrupted in 2025, with 104 wells drilled for the full year despite flood-related disruptions, supporting a near-term increase in production compared to the previous quarters.
• GLNG delivered full year LNG production of 6 Mt. The Roma field achieved record daily production of 223 TJ per day. Scotia delivered record average daily production of 105 TJ per day over the fourth quarter. Arcadia achieved facility reliability above 98 per cent. Development activities at Fairview continued to progress during the quarter, with 21 wells drilled as part of the ongoing Fairview SD25 and EE Phase 1 programs (116 wells total).
• Signed a well-priced mid-term LNG portfolio supply contract to supply approximately 0.6 Mtpa over a period of up to five years from 2026.
• A drilling rig was secured for the Beetaloo Basin program consisting of a 2-3 well campaign planned for the third quarter of 2026. All regulatory approval applications required for the appraisal program were submitted and consultation with Traditional Owners was undertaken.
• Moomba Carbon Capture and Storage phase 1 (Moomba CCS) continues to perform to plan, safely and permanently storing more than 1.5 Mt of CO2e since start-up. Moomba CCS met the high compliance standards of the Clean Energy Regulator and received 907,872 Australian Carbon Credit Units in the fourth quarter, covering the period from project commencement in September 2024 to June 2025.

Disciplined capital management

• Raised $1 billion senior unsecured fixed-rate bond at 5.75 per cent maturing November 2035.
• Accelerated the final repayment to close the PNG LNG project finance facility.
• Executed a conditional sale and purchase agreement to divest non-core 42.86 per cent interest in the Mahalo Gas Project (Bowen Basin, Queensland) to Comet Ridge Mahalo Limited for A$40 million upfront consideration and up to A$20 million in contingent payments linked to production milestones.
• Completed the divestment of non-core 42.71 per cent interest in the Petrel field and 100 per cent interest in the Tern fields in the Bonaparte Basin (offshore Northern Australia), to Eni Australia.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said that continued focus on operational excellence across our base business, disciplined execution of major development projects and an unwavering commitment to safety underpinned Santos’ performance throughout 2025.

“Personal and process safety, and environmental performance, was outstanding, with the company in the top quartile of global industry benchmarks for personal safety and better than global average for process safety and environment performance,” Mr Gallagher said.

“The fourth quarter lifted free cash flow for the full year to approximately $1.8 billion, a strong result in a year of relatively soft commodity prices for the industry, which demonstrates the value of our focus on margin in our marketing and trading activities.

“The performance of the base business has been a real highlight in 2025 with strong production despite the impact of the biggest floods in the Cooper Basin since the 1970s.

“Santos now has a strong platform for production growth with Barossa’s first LNG cargo currently loading at Darwin. We have taken a very considered approach to the final stages of commissioning to ensure offshore operations achieve a steady state, high level of reliability as quickly as possible once full production is achieved. Following two connection failures on the utilities and firewater mains GRE pipework systems, a campaign to strengthen all similar connections across the FPSO was undertaken which caused delays of approximately two months to our production ramp up schedule. While this was disappointing our aim is to commission the facilities and to identify and rectify any vulnerabilities to support our objective of achieving a high reliability operation for the long term. Our focus is now on safely and reliably increasing Barossa gas production to deliver long-term value for shareholders in line with our FID promise.

“We are also moving close to first production from Pikka, positioning the company to deliver sustainable returns to our shareholders and continue to reinvest in the business to grow production.

“Drilling at Pikka continues to perform strongly, with the 23rd well achieving the highest productivity so far, with an initial rate of approximately 8,000 barrels of oil per day. The 24th well was the second combination well, developing two downhole reservoir sections with one well. The drilling capability and innovation developed at Pikka will underpin our strategy for future developments.

“Once at full rates, Barossa LNG and Pikka phase 1 together are expected to lift Santos’ production by around 25 to 30 per cent by 2027 compared to 2024 levels.

“Moomba CCS continues to be a great success, performing to plan. It has met the strict performance requirements of the Clean Energy Regulator, resulting in the issuance of more than 900,000 Australian Carbon Credit Units which cover the project’s contribution to emissions reduction from start-up in September 2024 to June 2025.

“Santos’ financial performance and disciplined approach to capital management were reflected in several key activities during the period, including the issuance of a $1 billion ten-year bond to enhance financial flexibility, the early repayment of the PNG LNG project finance facility, the divestment of two non-core assets to sharpen portfolio focus and the receipt of the Fluor settlement proceeds. These measures have reinforced the strength of Santos’ balance sheet and reflect our continued focus on disciplined capital allocation and long-term shareholder value.

“Santos remains laser focused on executing our strategy in line with our disciplined, low-cost operating model and capital allocation framework. This discipline combined with an all-in free cashflow break-even target of $45 to 50 per barrel, will position Santos over the next few years to deliver sustainable results and provide strong returns for our shareholders,” said Mr Gallagher.

Source: Santos

Download the Santos-Fourth Quarter Report

The Timor-Leste government has taken a concrete step toward unlocking the long-delayed Greater Sunrise LNG project, signalling that the two-decade-old development is edging closer to physical execution after committing almost US$20m to early-stage technical work.

The spending covers two critical tenders — a US$5.6m geotechnical survey and a US$13m metocean survey — announced by the Ministry of Petroleum and Mineral Resources as groundwork for engineering design and offshore development planning.

Officials say the surveys are essential to de-risking one of the country's most strategically important projects, which has been stalled for years by commercial disputes, development concept changes and geopolitical sensitivities over gas processing options.

Speaking to ENB, a Woodside spokesperson said tenders are "part of the broader commercial and technical maturation work agreed between the Ministry of Petroleum and Mineral Resources and Woodside to advance studies on a Timor-based LNG development concept for Greater Sunrise. This is consistent with the parties' cooperation agreement."

They added that the surveys will contribute to a possible future concept selection recommendation and that as yet no concept has been selected.

The presidential view

Speaking exclusively to ENB last month, Jose Ramos Horta, the president of Timor-Leste, said he expects the partners of the Greater Sunrise joint venture - Timor GAP and Woodside - to announce in the middle of 2026 that the LNG project's processing facilities will be built in his island nation.

The opportunity

Discovered in 1974, the Greater Sunrise fields hold a total estimated contingent resource of 5.3 trillion cubic feet of natural gas and 226 million barrels of condensate, making it one of the most significant undeveloped gas resources in the region. The possibility of tapping into it as a viable project has been considered for many years, with discussion centred on the location of the processing facilities.

But with the fields halfway between Australia and Timor-Leste, the question has always been where will the Greater Sunrise joint venture - comprising TIMOR GAP (56.56%), operator Woodside (33.44%), and Osaka Gas Australia (10%) – opt to build the LNG processing plant – in Natabora or on Australian soil?

Recent momentum

In October, ENB reported that Australia and Timor-Leste had restarted formal negotiations to advance the long-delayed Greater Sunrise gas project, with officials meeting in Dili to discuss governance and legal arrangements for the shared offshore fields.

In late November, Woodside announced it had signed an agreement with the Timor-Leste government that sets a path to selecting the site for Greater Sunrise's LNG processing facilities by mid-2026, sparking a concept study to weigh Timor-Leste and Australian development options.+

This deal came as Woodside's lead on the Greater Sunrise project - Julie Fallon, Woodside's executive vice president, technical and energy development - gave an update on the scheme, saying: "The successful development of these fields offers both Australia and Timor-Leste an opportunity to generate stable and significant cash flow over a period of potentially 30 years, providing the Greater Sunrise joint venture with the potential shareholder value and growth."

The location question

Categorised as a "Least Developed Country" by the UN, President Ramos-Horta told ENB the decision to develop a processing plant in Natarbora, the greenfield region on the south of the island, would be "transformative" for his nation.

"The south coast is one of the least populated areas of the entire country – traditionally, Timorese live in the northern coast. The south coast is actually fertile… and could be a whole new economic hub for Timor-Leste, including agriculture and industries of all sorts.

"But going back to the '60s, everybody's talked about it, from the time of the Portuguese, they talk about the south coast will be the breadbasket team, but it never happened.

"Now, finally, it's going to happen, starting with the gas industry, which will generate possibilities for a fertiliser industry and fertiliser plants, which will aim for the world market, but also for our country's needs in terms of our strategic policy to make Timor-Leste self-sufficient in agriculture to double or triple our agriculture output," enthused the president.

For the president, the benefits for the JV partner in opting to build the LNG plant in Timor-Leste are something of a no-brainer.

"Even a small shopkeeper owner would look at it and see the advantage of bringing the pipeline to Timor-Leste.

"It's a bit like you're trying to compare the cost of taxes and labour between the United States and Mexico. Our labour cost is very low…we don't have any dispute or conflict with any of our neighbours, and…with the plant in Timur-Leste also, we are already several hundred kilometres closer to the gas energy market.

"And Australia, anyway, has endless opportunities all over Western Australia, northern Australia…full of resources," the president added.

"The Darwin option would give the Australian government a lot of headaches in terms of addressing Australia's commitment…to clean energy.

"In Timor-Leste, we don't have the problem. Our contribution to CO2 emission, emissions is 0.003%, so it's next to nothing.

"And because of our status as a least developed country, we have much more leeway and time frame to transition to renewables," he added.

Source: Energy News Bulletin