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Santos ships first Alaskan oil cargo
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Santos ships first Alaskan oil cargo

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  • Santos loaded 450,000 barrels of crude oil from the Pikka phase 1 development.
  • Following the announcement, the Santos share price was up at $8.
  • The company aims to shift to a low-cost operating model to increase shareholder value.

Santos (ASX:STO) shipped its first cargo of 450,000 barrels of crude oil from the Pikka phase 1 development on Alaska's North Slope.

The initial shipment departed from the Valdez Marine Terminal aboard the Polar Resolution to supply the United States West Coast refining system.

"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," said Santos Managing Director and CEO Kevin Gallagher.

The Pikka Phase 1 Project currently produces roughly 23,000 barrels of oil per day gross, with output heading towards a target of approximately 80,000 barrels per day.

Santos stated that this operation marks the start of commercial exports from Pikka while management moves towards a low-cost operating model.

Following the announcement, the Santos share price was up at $8.

Santos holds a 51% interest in the Pikka Unit and partners with Repsol, which owns the remaining 49% stake.

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