Santos produces first oil at Pikka on Alaska’s North Slope

Santos has started oil production from the first phase of the Pikka development in the Nanushúk formation on Alaska’s North Slope.

Initial production is part of the start-up and late-stage commissioning process that will lead to an initial ramp-up to 20,000 b/d over the next few weeks, the operator said in a release May 18. Production is expected to be intermittent as subsystems are progressively brought online. 

Twenty-eight development wells have been drilled in the first phase of the Pikka project (21 stimulated and flowed back in line with pre-drill expectations), which, once completed, will comprise 45 wells operated from a single drilling platform, a seawater treatment plant, a remote operations center, and associated pipelines that connect to the existing infrastructure in the area. 

Production will be maintained at start-up level for about 1 month until water injection is established following start-up of the seawater treatment plant. Together with well inventory buildout and progression of well tie-in activities, Pikka is expected to reach a production plateau of 80,000 b/d during this year's third quarter.

First sales revenue is expected about 2-3 months following first oil, with Santos and its partner alternating tanker shipments from the Port of Valdez.

Santos operates the Pikka Unit 51% interest. Repsol holds the remaining 49%.