Santos announced the first oil extraction from Phase 1 of the Pikka project on Alaska’s North Slope, marking the operational start of one of the most significant upstream developments in the United States in recent years.
Crude oil flow has already been established through the automated LACT system into the Pikka sales pipeline, while final commissioning activities and the connection of critical subsystems progress.
The Australian company operates the project with a 51% stake, while Repsol holds the remaining 49%.
Pikka and oil production with 80,000 barrels per day
During the first weeks of operation, Phase 1 will reach approximately 20,000 gross barrels per day. Santos indicated that production will be intermittent while new operating systems are incorporated and the activation of the seawater treatment plant is completed.
Subsequently, the project plans to progressively increase its capacity to reach 80,000 gross barrels per day during the third quarter of the year.
In this first stage, 28 development wells were drilled, and 21 of them have already been stimulated and have started production according to operational forecasts.
Furthermore, the company estimates that the first commercial revenues will begin to be recorded between two and three months after the first extraction, with alternating exports between Santos and Repsol from the Port of Valdez.
The Nanushuk field drives upstream growth in Alaska
Kevin Gallagher, CEO of Santos, highlighted that Pikka represents a strategic asset within the Nanushuk formation, considered one of the areas with the highest oil potential in Alaska.
The executive noted that the project demonstrates the company’s ability to develop large-scale resources through safe and efficient operations, incorporating technical improvements in drilling that allow for reduced times and costs.
Gallagher also indicated that Santos is already working under an operating model focused on capital discipline and cost optimization to maximize the long-term value of the asset.
Santos projects new developments on Alaska’s North Slope
The start of production at Pikka also strengthens Santos’ expansion strategy in the United States. The company recalled that the Quokka-1 appraisal well recently confirmed the potential of its asset portfolio in Alaska.
According to data reported by the company, the Quokka Unit possesses estimated 2C contingent resources of 177 million barrels of oil equivalent net.
In addition to the development of Pikka, Santos is considering future investments in the Quokka and Horseshoe units within the Nanushuk formation, subject to technical evaluations and final investment decisions.
With this progress, the Pikka project consolidates its position as one of the new oil production hubs in Alaska and one of the main upstream growth bets for Santos and Repsol in North America.
Source: Santos
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