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Santos Produces First Oil at Alaska Pikka Phase 1 Project

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Australian energy company Santos has officially started oil production from the Pikka Phase 1 development on Alaska's North Slope, the company said on Monday.

Initial flow has been routed through the Lease Automated Custody Transfer meter into the Pikka sales pipeline, it said.

Santos operates the asset with a 51% interest, alongside joint-venture partner Repsol, which holds the remaining 49%.

Production will initially remain intermittent as essential subsystems are integrated, with volumes expected to scale to 20,000 gross barrels per day over the coming weeks, the company noted.

Output will be capped at this level for about one month until reservoir pressure maintenance is secured via water injection from the newly commissioned Seawater Treatment Plant.

Following subsequent well tie-ins and inventory buildout, the project is on track to reach its peak plateau capacity of 80,000 gross bbl/day during the third quarter of 2026, as per the statement.

First sales revenue from the development is projected to materialize within two to three months, the company said.

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