en.Wedoany.com Reported - Santos has commenced continuous production operations at the Phase 1 Pikka oil development project on Alaska's North Slope, marking a significant milestone for one of the largest new oil projects in the region.

The company stated that the first production wells have come online, with a daily output of approximately 20,000 barrels. Santos expects to initiate water injection operations in the coming weeks to maintain reservoir pressure and gradually bring more wells into production. The Phase 1 Pikka project targets a stable production rate of approximately 80,000 barrels per day by the third quarter of 2026.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said that Pikka is a high-quality, low-cost, economically viable oil development project with a long reserve life. The first production wells have been brought online and are achieving continuous production. The company will provide pressure support through water injection and gradually bring more wells into production, advancing toward the stable production target.

The project brings approximately 400 million barrels of total 2P reserves into production, supported by an additional 600 million barrels of total 2C resources, laying the foundation for future development phases within the Pikka unit. Located on Alaska's North Slope, Pikka is operated by Santos in partnership with Repsol. This development project is expected to become a significant contributor to Alaska's oil production and generate long-term cash flow from one of the largest recent oil discoveries in the state.

According to Santos, the project's resource base supports phased expansion opportunities beyond Phase 1, and the operator will continue to evaluate additional development potential across the entire field. As of the end of 2025, Santos' net share of reserves and contingent resources in Pikka stood at 164 million barrels of 2P reserves and 252 million barrels of 2C resources.

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