Santos has achieved a significant milestone at its Pikka phase one project with the safe arrival of critical processing modules at Oliktok Point, Alaska, US.

This marks a crucial step in the development of the project, which is expected to contribute significantly to the company's growth and presence in the region.

The transportation of these modules commenced from the Hay River Marine Terminal in Canada. The journey spanned 1,086 miles (1,747.7km) along the Mackenzie River system to Tuktoyaktuk on the Beaufort Sea, followed by a 380-mile sea barge trip to Oliktok Point.

Additional processing modules are currently en route from the Pacific Northwest and are set to arrive at the site in August.

A seawater treatment plant constructed in Batam, Indonesia, is also on its way to Alaska.

Once all components have reached their destination, they will be installed, integrated and commissioned with the existing facilities to prepare for the production of first oil.

Santos managing director and CEO Kevin Gallagher said: “Our highly capable team that delivered early completion of the pipeline in just two winter seasons followed by a successful river-lift of key processing modules, has created the opportunity for early start-up and production from Pikka.

“Pikka phase 1 is almost 90% complete and we are currently drilling our 21st well.

“The Pikka project together with the Barossa LNG project are expected to deliver around a 30% increase in production by 2027. These two world-class projects are expected to set the company up with long-term, stable cash flows to support both returns to shareholders and investment in future production growth.”

In a related development, Santos has also secured a new mid-term agreement with QatarEnergy Trading to supply approximately 500,000 tonnes per annum of liquefied natural gas (LNG) over a two-year period, starting in 2026.

This LNG will be sourced from Santos' portfolio and delivered on an ex-ship basis.