Energy major Santos has started continuous production operations at its Pikka Phase 1 oil project on Alaska’s North Slope.
The operational milestone has seen the first wave of production wells go online, initially delivering a gross output of approximately 20,000 barrels of oil per day.
Santos, which holds a 51 per cent operating stake in the venture alongside Spanish major Repsol, is now targeting a full plateau production of 80,000 barrels per day in the third quarter of 2026.
To achieve this target, Santos plans to introduce pressure support through seawater injection over the coming weeks before progressively bringing additional production wells online.
The launch of continuous operations unlocks roughly 400 million barrels of gross proven and probable (2P) reserves.
Furthermore, the asset is underpinned by an additional 600 million barrels of gross contingent (2C) resources, providing a solid foundation for future staged expansions across the broader Pikka Unit.
Santos CEO Kevin Gallagher said the transition to continuous operations marks a pivotal step for the company’s international growth strategy.
“The first production wells are now online and delivering continuous production,” Gallagher said.
“We will commence pressure support through seawater injection and bring more wells online progressively, building production toward our plateau target of approximately 80,000 barrels per day in the third quarter of this year.”
Gallagher added that the low-cost development boasts exceptionally strong economics and a lengthy reserves lifespan.
“The project is set to generate robust cash flows and support strong shareholder returns over the coming years,” the CEO said, noting the long-term benefits flowing to joint-venture partners, the State of Alaska, and Alaska Native Corporations.
The operational ramp-up follows the establishment of intermittent first oil at the North Slope development in May, signalling a major transition from capital-intensive construction into a cash-generating engine for the company.
