World Oil
(WO) – In its quarterly report, Australia’s Santos Ltd. announced it expects first oil production from it’s Pikka Project in 2026.
The Pikka project, in Alaska’s North Slope, has made “excellent progress over the winter months in Alaska,” Santos reported. According to the statement, the Pikka Project is 47% complete as of March 31, 2024. Rig operations were completed on seven wells in the quarter. Four wells have been stimulated with three successfully flowed back.
Flow back results compare favorably with pre-drill expectations. Vertical support members for the pipeline are more than 65% complete, and pipelaying was more than 61% complete for the winter season objectives. The seawater treatment plant was 62% complete at the end of the quarter.
Santos reached a final investment decision on the Pikka Project in August 2022. The Pikka Project includes a single drill site, an oil processing facility and other infrastructure, with production expected to reach 80,000 bopd.
Pikka, along with the company’s Barossa gas project and CCS ventures, are “world-class projects that will be transformative for Santos and set the company up with long-term, stable cash flows for the next 10-15 years at least,” said Santos Managing Director and Chief Executive Officer Kevin Gallagher.
“Our focus for 2024 is continuing to drive the disciplined low-cost operating model across the business and the execution of Barossa, Pikka and Moomba CCS projects whilst maintaining a strong balance sheet,” Gallagher concluded.
Lead image (Credit: Reuters)
