Key facts
- Santos loaded the first cargo of crude oil from its Pikka project in Alaska.
- The initial shipment contained 450,000 barrels of Alaskan North Slope (ANS) crude.
- The cargo departed from Port Valdez on the Polar Resolution.
- The destination for the crude is the US West Coast.
- Continuous production at the field began in June, currently averaging 23,000 b/d.
- Full project capacity of 80,000 b/d is expected in the third quarter.
- Santos holds a 51% stake in Pikka, with Repsol owning 49%.
Australian independent Santos has loaded the first cargo from its 80,000 b/d Pikka oil project, located in Alaska's North Slope (ANS) region. The initial shipment, comprising 450,000 barrels of ANS crude, departed from the Port of Valdez on the Polar Resolution, bound for the US West Coast. Alaskan government data indicates that total ANS production averaged 462,100 b/d in the week ending July 31.
Continuous production at the Pikka field commenced in June, with current output averaging 23,000 b/d. The project is expected to reach its full capacity of 80,000 b/d in the third quarter of this year. Santos holds a 51% stake in the Pikka project, while its Spanish joint venture partner, Repsol, owns the remaining 49%.
On August 10, ANS crude was priced at $85.73/bl, a decrease from $127.42/bl on May 4. Strong US West Coast refining economics and supply concerns are currently boosting ANS values. Medium crude supplies remain tight due to geopolitical uncertainty in the Middle East. The ANS 3-2-1 refining crack spread on the US West Coast averaged nearly a record $77/bl last week.