Australian energy company Santos has begun continuous production operations at the Pikka phase one oil project on Alaska’s North Slope, with the initial production wells now online.
The project is currently delivering approximately 20,000 barrels per day (bpd).
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The company expects to start pressure support through seawater injection over the coming weeks and plans to incrementally bring further production wells online as the project develops.
Santos is aiming to achieve plateau production of approximately 80,000bpd during the third quarter of 2026 (Q3 2026).
According to Santos, Pikka phase one is expected to bring around 400 million barrels (mbbl) of gross proved plus probable (2P) reserves into production.
The company has also indicated that an additional 600mbbl of gross contingent resource could support further staged development beyond the first phase within the Pikka Unit.
Santos managing director and CEO Kevin Gallagher said: “The first production wells are now online and delivering continuous production. 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.
“Pikka is a high-quality, low-cost oil development with strong economics and long reserves life benefitting not only Santos and its joint venture partner Repsol but also key stakeholders including the State of Alaska and Alaska Native Corporations. The project is set to generate robust cash flows and support strong shareholder returns over the coming years.”
Santos holds a 51% stake in the project and serves as operator, while Spanish company Repsol owns the remaining 49%.
The Australian company became operator following its acquisition of Oil Search in December 2021.
Santos and Repsol reached a final investment decision for the $2.6bn Pikka phase one project in August 2022.
Last month, Santos confirmed it will move forward with the Agogo production facility tie-in project in Papua New Guinea.
