Alaska Governor Mike Dunleavy is praising today’s announcement by Santos and Repsol to move forward with Phase 1 of the Pikka project on Alaska’s North Slope. Located in the Nanushuk oil formation on state leases, the Pikka unit contains an estimated 768 million barrels of recoverable oil. Oil Search will invest $2.6 billion to bring the field into production by 2026 which will create 2,600 jobs during construction, and 500 jobs once oil production begins.
“This announcement will continue the renaissance on Alaska’s North Slope,” said Governor Dunleavy. “Alaska has a rich and successful oil and natural gas history, and we welcome the family wage jobs the Pikka project will bring, and the 80,000 barrels of new oil it will send down the Trans-Alaska Pipeline System each day. 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.”
“This announcement opens a major new chapter for the North Slope, and confirms a bright future for natural resource development in Alaska,” said Department of Revenue Commissioner Lucinda Mahoney. “These two companies have demonstrated that a major new hydrocarbon project in Alaska can be done with community support, full compliance with Alaska’s rigorous environmental standards, and an internationally competitive low emissions profile. This development will bring billions of dollars to the State in royalties, significant new throughput volumes to the Trans Alaska Pipeline System, and an economic boom to the people of Alaska. We believe this investment will yield real value to Alaska for many years ahead and thank both Oil Search/Santos and Repsol for their commitment to Alaskans.
Santos will prioritize Alaskan businesses and workers for the Pikka project. Around 75% of the projected budget will be with companies operating in Alaska, and contracts are expected to be awarded this week.