Resources giant Santos insists there will be no delays to its troubled gas project in the Timor Sea, despite having to re-consult traditional owners after key approvals for the Barossa field were revoked, as it told investors production and revenue had taken a dive.

Adelaide-based Santos, one of the country’s biggest oil and gas companies, said oil production, revenues and underlying profits have fallen over the half-year to June. The result was in line with slumping oil and gas prices as energy markets rebalance from a two-year supply squeeze precipitated by the war in Ukraine that drove prices to historic highs.

The energy major’s Barossa field off the northern coast of Australia is facing a significant setback after a landmark legal win by Tiwi Islanders last year forced it to hold further talks with Indigenous groups and suspend drilling at the $5.8 billion project.

Santos chief executive Kevin Gallagher said the company was redoing its consultation with traditional owners and had resubmitted its environmental plans to the regulator to “try and get drilling up and running again by the end of this year.”

“We don’t see any delay to the Barossa project. It’s still scheduled to come on in the first half of 2025,” Gallagher said.

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The oil and gas producer said its profit for the half-year to June was down from the previous period’s record high, by 32 per cent, to $US790 million ($1.22 billion) and sales revenue contracted by 21 per cent to $US3 billion. Its oil output, at 45 million barrels, was down 13 per cent. The company increased its interim dividend 14 per cent to US8.7¢ per share, paying out $US283 million.

Australian exports of liquified natural gas hit $92 billion over the past year on the back of record-high prices as Europe scoured the world for alternatives to Russia’s pipelines and Western nations imposed rolling sanctions on Moscow’s energy output, lifting demand for spare cargoes across Europe and Asia. This year, prices have fallen sharply.

“As much as we’ve come down significantly this year to a more normalised pricing environment, the fact is this is a very solid result for the company. The assets are operating well. Our costs are being controlled,” Gallagher said. “It’s still the second-highest financial performance the company’s ever turned in.”