Pikka Sales Oil Pipeline
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Pikka Sales Oil Pipeline is an oil pipeline under construction in Alaska, United States.[1]
Location
The pipeline runs from northeast of Nuiqsut, North Slope, Alaska, to a tie-in point further east within the North Slope, Alaska.[2]
Project Details
- Operator: Santos Ltd.[3]
- Owner: Santos Ltd. (51%); Repsol (49%)[4]
- Parent company: Santos Ltd. (51%); Repsol (49%)
- Capacity: 80,000 bpd[3]
- Length: 22 miles[2]
- Diameter: 16 inches[2]
- Status: Construction[1][2]
- Start year: 2026[5]
Background
In 2018, Papua New Guinea-based company Oil Search Ltd. acquired the project from Colorado-based Armstrong Energy.[6]
In May 2019, Oil Search announced it had received a permit from the U.S. Army Corps of Engineers for its Pikka development, which was planned west of Prudhoe Bay. Oil Search had proposed building up to three drill sites, about 25 miles of roads and about 35 miles of pipelines, a central processing facility, two bridges and an operations center with beds for 200 workers. The project would be located in an area seen as a new hot spot for oil activity on the western North Slope, with ConocoPhillips also pursuing projects in the region. Oil Search estimated the project could produce about 120,000 bpd, aiming for a 2025 start date.[1]
In March 2020, Oil Search announced that, due to the sudden collapse in global oil prices to below US$30 a barrel forcing it to cut back on capital expenditure by shelving projects around the world, work to begin early oil production at the Pikka project was put on hold, and no further exploration would be carried out.[7]
In May 2021, it was reported that Oil Search was now implementing a phased development approach on a slower timeline, allowing for reduced costs and oil production anticipated by 2024.[8] In February 2021, Oil Search entered the FEED (front-end engineering and design) stage, phase 1 of 3 total; as of August 2021, construction did not appear to have begun.[8]
In September 2021, Oil Search merged with Australia-based Santos Ltd.[9]
In August 2024, Kevin Gallagher CEO of Santos, said that the Pikka developent was 60% complete, "with more than 40 miles of pipeline installed."[10]
In August 2025, Santos confirmed that the pipeline was fully installed and first oil from Pikka was expected in January-March 2026.[5]
Articles and Resources
References
- ↑ 1.0 1.1 1.2 Company Receives Federal Permit for Alaskan Pipeline Project, Pipeline & Gas Journal, May 19, 2019, accessed Aug. 25, 2021.
- ↑ 2.0 2.1 2.2 2.3 "Pikka Sales Oil Pipeline ROW Lease Application" (PDF). dog.dnr.alaska.gov. 2022-02-17. Archived (PDF) from the original on 2026-01-06.
- ↑ 3.0 3.1 "North America | Santos". www.santos.com. Retrieved 2026-01-06.
- ↑ "Santos likes Pikka; Oil Search list of oil-rich AK finds grows - November 14, 2021 - Petroleum News". www.petroleumnews.com. Retrieved 2022-02-22.
- ↑ 5.0 5.1 "Australia's Santos brings forward Alaska's Pikka oil | Latest Market News". www.argusmedia.com. Retrieved 2026-01-06.
- ↑ Rhode, Scott (2021-12-08). "Oil Search Approves Merger with Santos". Alaska Business Magazine. Retrieved 2022-02-22.
- ↑ Oil Search halts sale talks, cuts spending as global prices collapse, Sydney Morning Herald, Mar. 18, 2020, accessed Aug. 25, 2021.
- ↑ 8.0 8.1 Amy Newman, How COVID-19 pushed Oil Search to pivot at Pikka, Alaska Business, May 24, 2021, accessed Aug. 25, 2021.
- ↑ newsengin (2021-09-14). "Merger may shift timing of Pikka development decision". Alaska Journal. Retrieved 2022-02-22.
- ↑ Kitchenman, Andrew; August 29, Alaska Beacon; 2024. "North Slope oil project is on track, Santos head tells industry gathering • Alaska Beacon". Alaska Beacon. Retrieved 2025-02-05.
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