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Santos Starts Continuous Oil Production at Alaska’s Pikka Project
Santos has started continuous production operations at the Pikka Phase 1 oil project on Alaska’s North Slope, marking a key milestone for one of the largest new oil developments in the United States.
The first production wells are now online and producing around 20,000 barrels of oil per day (bpd) on a gross basis. Santos said it plans to begin seawater injection in the coming weeks to provide reservoir pressure support before gradually bringing additional wells into operation. The company is targeting plateau production of approximately 80,000 bpd during the third quarter of 2026.
Pikka Phase 1 is expected to unlock around 400 million barrels of gross proved and probable (2P) reserves. The broader Pikka Unit also contains an estimated 600 million barrels of gross contingent resources (2C), providing a foundation for future expansion phases beyond the initial development.
Santos Managing Director and CEO Kevin Gallagher said the transition to continuous production represented an important step toward reaching full output later this year.
The project is operated through a joint venture between Santos and Spanish energy company Repsol. Santos has previously described Pikka as a low-cost, long-life oil asset capable of generating strong cash flow and supporting shareholder returns over an extended period.
Located on Alaska’s prolific North Slope, Pikka is one of the most significant conventional oil projects currently being developed in North America. The field is expected to contribute meaningful new production to the Trans-Alaska Pipeline System at a time when operators are seeking to offset declines from mature fields across the region.
According to Santos’ year-end 2025 reserves report, the company’s net share of Pikka resources includes 164 million barrels of 2P reserves and 252 million barrels of 2C contingent resources. The project is expected to provide economic benefits for the State of Alaska and Alaska Native corporations through royalties, taxes, and employment opportunities.
With production now underway and additional wells scheduled to come online over the coming months, Pikka is poised to become a major contributor to Santos’ oil portfolio and future cash generation.
By Charles Kennedy for Oilprice.com
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