Santos Ltd said Tuesday it had loaded the first crude oil cargo from the Pikka development on Alaska’s North Slope, headed to the West Coast for refining.
Consisting of 450,000 barrels, the inaugural dispatch was loaded onto the Polar Resolution at the Valdez Marine Terminal, the Australian company said in a press release.
“Pikka phase 1 is currently producing approximately 23,000 barrels of oil per day (gross), building toward plateau production of approximately 80,000 barrels of oil per day, expected during the third quarter of 2026”, Santos said.
Santos managing director and chief executive Kevin Gallagher said, “When the Pikka Field was discovered, the Nanushuk formation was recognized 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.
“We are already improving technical limits during our drilling program that save time and cost, and we will continue to pursue improved performance”, Gallagher added.
“With Pikka phase 1 now in operation, our focus is on transitioning from project execution to our disciplined, low-cost operating model, to maximize the project’s long-term value for shareholders”.
Earlier this year Santos and partner Repsol SA further delineated the Nanushuk formation with the completion of the Quokka-1 appraisal well.
“The Quokka-1 results demonstrate the exceptional quality of the Nanushuk reservoir and confirm our geological assessment of this significant accumulation”, Gallagher said in a statement April 8. “Located strategically to the east of our Pikka phase 1 development, Quokka represents another high-return opportunity that strengthens our position on the North Slope and extends our development runway in Alaska for years to come”.
Drilled to a total depth of 4,787 feet, Quokka-1 “encountered a high-quality reservoir with approximately 143 feet of net oil pay in the Nanushuk formation, demonstrating an average porosity of 19 percent”, Santos said.
“Following a single-stage fracture stimulation, the well achieved a flow rate of 2,190 barrels of oil per day (bopd)”, it added.
Reservoir sands “correlate” with the Mitquq-1 discovery well drilled in 2020 about six miles from Quokka-1, according to Santos. Both are within the Quokka Unit.
“[F]luid analyses confirm the presence of high-quality, light-gravity oil, supporting strong well performance and improved pricing relative to Pikka oil”, Santos said. “Together with additional geological data, these results underpin the potential for a two-drill-site development with production capacity comparable to Pikka phase 1.
“Santos has commenced development planning, including the initiation of key permitting activities”.
As of yearend 2025 the Quokka Unit had 177 million barrels of oil equivalent in 2C contingent resources, according to Santos.
Santos operates both the Pikka and Quokka unitized areas. Spain’s Repsol owns the remaining 49 percent.