The Pikka Phase 1 project represents compelling value for Santos’ shareholders given its robust economics and strong local stakeholder support.

Phase 1 of the project is expected to create more than 500 jobs and the construction of the project will deliver approximately 2,600 jobs. Santos is focused on local procurement and local employment as part of the project, with 98 percent of current employees living in Alaska. It is worth noting that Santos has a 51 percent interest and is the operator of Pikka while Repsol holds the remaining interest. Santos said that it was committed to delivering a net-zero project and has entered into a Memorandums of Understanding with Alaska Native Corporations to deliver carbon offset projects.Īs such, Pikka Phase 1 represents one of the lowest-cost and lowest unabated emissions intensity new oil projects in the region. Taking FID on Pikka Phase 1 is consistent with Santos’ goal of achieving net-zero by 2040. The project has strong fundamentals and is in a world-class oil-producing province with significant existing infrastructure, has low unabated emissions intensity, and is supported by key stakeholders, including the State of Alaska, the North Slope Borough, the landowner company Kuukpik Corporation and the Arctic Slope Regional Corporation. Pikka Phase 1 is expected to produce 80,000 barrels a day of oil gross with first oil anticipated in 2026. Santos Investing $2.6Bn In Pikka Oil Project In AlaskaĪustralian oil and gas major Santos has made a final investment decision (FID) to proceed with the $2.6 billion Pikka Phase 1 oil project on the Alaskan North Slope. House race – Palin may win with Ranked Choice Voting. Mineral sourcing requirements lead to messy roll-out of EV credits. Biden’s freeze on public land leases reinstated – for now. FERC approves Marathon’s (Trans Foreland Pipeline unit) request for an extension on their Kenai LNG import project. subsidiary, Oil Search Alaska, live in Alaska.Today’s Key Takeaways: Santos proceeds with $2.6 billion investment in Alaska- more oil, more jobs, more state revenue. At present, about 98 percent of the employees for Santos’ U.S. Pikka will create an estimated 2,600 construction jobs and 500 permanent jobs, furthering the companies’ strong commitment to Alaska. Santos owns 51 percent of the project and Repsol holds a 49 percent stake. The Pikka project is projected to produce 80,000 barrels of oil per day by 2026. “Today’s announcement is great news for energy security, national security, and for economic and community development, including thousands of jobs for Alaskans, in our state where we have the highest environmental standards in the world.” “It’s exciting to see this project, which has been in the works since I was serving as Alaska’s Department of Natural Resources Commissioner, finally come to fruition,” Sullivan said. I appreciate the approach that Santos and their partner, Repsol, have taken to advance this project, their strong collaboration with local entities and communities, and their commitment to producing this resource with net-zero emissions from the project itself.” “The Pikka project will help refill the Trans-Alaska Pipeline System while creating good jobs for Alaskans and bolstering our nation’s energy security. “This is great news for Alaska that will strengthen our economy for a long time to come,” Murkowski said. Senators Lisa Murkowski and Dan Sullivan (both R-Alaska) today issued the following statements welcoming Santos’ announcement that it has approved a $2.6 billion investment for Phase 1 of its Pikka project on Alaska’s North Slope.

Pikka issue