www.AlaskaAlliance.com 19 pressure maintenance at Pikka. It will begin operations in 2026. Meanwhile, all major construction contracting is complete at Pikka, with issued purchase orders under awarded contracts totaling more than $2 billion, Santos told RDC members at the briefing. Pikka’s phase one will produce 80,000 barrels per day at its peak rate, with oil coming from one production pad. Other production pads are planned and permitted as part of the next phase of Pikka, which has not yet been sanctioned. As of August 2022, the estimated proven and probable recoverable reserves are 397 million barrels in the reservoir area being tapped in phase one. Reserves are expected to grow as Pikka expands in subsequent development phases. Santos has embraced a “net zero” carbon emissions goal at Pikka, which is part of a corporate-wide strategy to reduce carbon dioxide releases that contribute to global warming. Pikka’s operations will be heavily electrified, and the company has also negotiated a forestry-based carbon “offset” program with an unidentified Alaska Native corporation which owns lands. Santos is also engaged with research and development of carbon dioxide underground injection and storage as well as projects to capture CO2 from power plant emission as well as direct air capture. Pikka was discovered in 2013 when Armstrong Oil and Gas and Repsol drilled the Qugruk 3 discovery well. Additional appraisal drilling was done to confirm the discovery. Armstrong sold its share of Pikka to Oil Search, which is based in Papua, New Guinea. Oil Search was subsequently acquired by Santos. Santos and Repsol made the Final Investment Decision for the $2.6 billion Pikka phase one in August 2022. — Tim Bradner Photo by Lee Leschper Tali Birch, General Counsel - Alaska, Santos, provided an update on the project’s progress at an RDC breakfast in May.
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