Santos Ltd. has taken a positive final investment decision to proceed first phase development of the Pikka oil project on the North Slope of Alaska.
The $2.6 billion project is expected to produce 80,000 b/d of oil when it comes on stream in 2026.
Santos gained the Pikka asset along with its acquisition of Oil Search Ltd. in December 2021 (OGJ Online, Sept. 10, 2021).
The development will comprise a single small footprint drilling pad with electrified field operations and will use the existing Kuparuk transportation pipeline and the Trans-Alaskan pipeline system.
Pikka reserves have been estimated at 397 million b/o.
The development is supported by the State of Alaska, the North Slope Borough, landowner company Kuupik Corp., and the Arctic Slope Regional Corp.
Santos said the development is consistent with the company’s goal of achieving net-zero emissions by 2040. The company entered memoranda of understanding with Alaska Native Corporations to deliver carbon offset projects, including an alliance with ASRC Energy Services on leading technology development for carbon solutions in the Arctic.
Local procurement and local employment will be a feature of the project with 98% of current employees living in Alaska. The project is expected to create more than 500 jobs. Construction will deliver about 2,600 jobs, Santos said.
Santos is operator of the Pikka Unit with 51% interest. Repsol holds 49%.