Oil companies Santos and Repsol have announced they will move forward with Phase 1 of the Pikka project on Alaska’s North Slope.
The Pikka unit contains an estimated 768 million barrels of recoverable oil, which could add 80,000 barrels of oil to the Trans-Alaska Pipeline System. First oil could be realized in 2026.
Santos, which acquired Oil Search, has a 51% interest in the project and will invest $2.6 billion to bring the Nanushuk-area field into production, which will require employing 2,600 workers during construction, and 500 jobs once oil production begins.
Santos of Papua New Guinea, is one of the leading independent oil and gas producers in the Asia-Pacific region, focused on Australia, Asia, and Alaska. It acquired Oil Search last year. Repsol is a Spain-based company that holds an interest in approximately 195,256 net acres on the North Slope.
Gov. Mike Dunleavy applauded the news: “This announcement will continue the renaissance on Alaska’s North Slope. Americans are paying sky-high energy prices right now – but it doesn’t have to be that way. Alaska has the resources and environmental safeguards in place to meet America’s energy needs today and for decades to come.”
Around 75% of the projected budget will be with companies operating in Alaska, and contracts are expected to be awarded this week.