Australian oil and gas company Santos has decided to proceed with the $2.6 billion oil project in Alaska in a bid to further diversify its production portfolio.
As the operator of the Pikka Unit joint venture (JV), the company announced a final investment decision (FID) to move ahead with the first phase of Pikka development.
Pikka Phase 1 is expected to produce 80,000 barrels of gross oil per day with first production slated for 2026.
The company aims to deliver a net-zero project (scope 1 and 2, equity share) and has signed memorandums of understanding with Alaska Native Corporations to deliver carbon offset projects.
Santos managing director and CEO Kevin Gallagher said: “Low-carbon oil projects like Pikka Phase I respond to new demand for OECD supply.”
“Santos has emission reduction plans to achieve scope 1 and 2 net-zero emissions by 2040 and in-line with that commitment, Pikka will be a net-zero project.”