Pikka phase 1 has initiated production as part of the start-up and late-stage commissioning process that will lead to an initial ramp-up to 20,000 bbl/day (gross) over the next few weeks, while production is planned to be intermittent as key subsystems are progressively brought online.
Production is then expected to be maintained at that level for about one month until water injection is established following the start-up of the Seawater Treatment Plant. Together with well inventory buildout and progression of well tie-in activities, Pikka phase 1 is expected to produce up to 80,000 barrels per day (bpd) during the third quarter.
Santos is the operator of the project and holds a 51 per cent interest in the Pikka Unit, with partner Repsol holding the remaining 49 per cent.
First sales revenue is expected approximately two to three months following first oil, with Santos and its partner alternating tanker shipments from the Port of Valdez.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Pikka is a tier-one asset in one of the world’s super basins.
Pikka Oil field
- is located in Alaska, west of the North Slope;
- Santos acquired Pikka’s shares from the Australian company Oil Search, which was dissolved in December 2021;
- the final investment decision (FID) was made in August 2022;
- the project is estimated to cost $2.6 billion;
Armstrong Oil and Gas and Repsol discovered the Pikka field by drilling the Qugruk 3 discovery well in 2013. In addition, 12 conventional and seven side track wells were drilled in the Pikka and Horseshoe areas by 2017.
In September 2024, the Alaska Department of Natural Resources approved Santos’s application to expand the Pikka concession by 25%.
