Australian energy company Santos has commenced oil production at the Pikka phase one development at North Slope, Alaska, US, aiming for an initial 20,000 barrels per day (bpd) gross of oil.
During the start-up and commissioning phase, production is set to ramp up to this initial level over the coming weeks and is set to be intermittent as essential subsystems are integrated.
It is anticipated that production will hold at this level for approximately one month until water injection is fully operational, enabled by the Seawater Treatment Plant.
The initial output will be channelled through the Lease Automated Custody Transfer (LACT) meter into the Pikka sales oil line.
Santos operates the project with a 51% stake, with Spanish energy company Repsol holding the remaining 49%.
In August 2022, both companies made a final investment decision (FID) on the $2.6bn Pikka phase one project.
The project aims to reach a production plateau of 80,000bpd (gross) during the third quarter (Q3).
Currently, 28 development wells have been drilled, with 21 meeting stimulation and flow-back expectations.
Santos expects the first sales revenue from the project within two to three months, with tanker shipments alternating between the company and Repsol from the Port of Valdez.
Santos managing director and CEO Kevin Gallagher said: “Alaska has a huge runway ahead of it which will underpin value-accretive production growth for Santos for the long term.
“When the Pikka Field was discovered, the Nanushuk formation was recognised as a new generation play in an established global super basin and we are proud to be at the forefront of unlocking its resource potential.
“The Pikka phase one project has demonstrated Santos’ capability to develop this world-class resource safely, responsibly and efficiently. We are already implementing technical drilling improvements that save time and cost, and we will continue to drive improved performance into the future.”
Phase one involves developing 32 leases within the larger Pikka oilfield and will feature 45 wells drilled from a single pad to minimise environmental impact.
Earlier this month, Santos announced plans to proceed with the Agogo production facility tie-in project in Papua New Guinea (PNG). The FID comes after the PNG LNG joint venture partners granted approval.
