Our focus in Alaska is advancement of our Pikka Phase 1 project, which includes a single drill site, an oil processing facility, and other infrastructure to support production of 80,000 barrels of oil per day.
In August 2022, Santos, as operator of the Pikka Unit joint venture, announced it had taken a final investment decision (FID) on the world class Pikka Phase 1 oil project located on the North Slope of Alaska. First oil is expected in 2026.
The Nanushuk play in the Pikka Unit represents one of the largest conventional oil discoveries made in the United States in the last 30 years, and the Pikka Phase 1 project is the most significant development on Alaska’s North Slope in more than 20 years.
Pikka has low emission intensity, placing it in the top quartile of oil and gas development projects globally for greenhouse gas emissions performance. Pikka is poised to play an important role in the energy transition and is aligned with our company goal of managing climate change risk.
Santos is committed to delivering a net-zero project (scope 1 and 2, equity share) from first oil and has entered into Memorandums of Understanding with Alaska Native Corporations to deliver carbon offset projects, including a Strategic Alliance with ASRC Energy Services, a wholly owned subsidiary of Arctic Slope Regional Corporation, on leading technology development for carbon solutions in the Arctic.
The project has strong fundamentals and is located in a world-class oil producing province with significant existing infrastructure, has low unabated emissions intensity and is supported by key stakeholders, including the State of Alaska, the North Slope Borough, the landowner company Kuukpik Corporation and the Arctic Slope Regional Corporation (ASRC).
