Santos has achieved first oil at its Pikka Phase 1 development in Alaska’s North Slope.
The initial start-up and late-stage commissioning phase will see gross production ramp up to 20,000 barrels per day over the coming weeks.
Flow will remain intermittent as vital subsystems are progressively brought online, with output holding at this level for roughly a month until water injection is established via the new Seawater Treatment Plant.
Santos operates the multi-billion-dollar project with a 51 per cent majority stake, alongside joint-venture partner Repsol, which holds the remaining 49 per cent.
As well tie-in activities progress and the well inventory builds out, the joint venture expects the project to hit its peak production plateau of 80,000 gross barrels per day during the third quarter.
To date, 28 development wells have been drilled, with 21 already stimulated and flowing back in line with pre-drill forecasts. First sales revenue is anticipated within two to three months, with Santos and Repsol alternating tanker shipments from the Port of Valdez.
Santos CEO Kevin Gallagher described Pikka as a tier-one asset in a global super basin that would underpin the company’s long-term growth.
“Alaska has a huge runway ahead of it which will underpin value-accretive production growth for Santos for the long term,” the CEO said.
“When the Pikka Field was discovered, the Nanushuk formation was recognised as a new generation play in an established global super basin and we are proud to be at the forefront of unlocking its resource potential.”
He added that Santos is transitioning to a disciplined, low-cost operating model to maximise shareholder value while eyeing future growth in the region, including the nearby Quokka and Horseshoe units.
Earlier appraisal results at the Quokka Unit alone revealed a net 2C contingent resource of 177 million barrels of oil equivalent.
“Santos plans to develop these resources with the same capital discipline and strong project execution capability we have demonstrated for Pikka phase 1,” said Gallagher.
