Santos Plans Progression of Pikka Oil Endeavor on Arctic Region
The Pikka project, located between the National Petroleum Reserve-Alaska (NPRA) and the Kuparuk oil field, has received a significant boost with all major environmental and regulatory approvals. The project, which is expected to create over 2,600 jobs during construction and 500 during production, is set to add diversification to the portfolio of the project's developer, Santos.
Santos, an Australian energy company, acquired the Pikka acreage from Repsol's former partner, Armstrong Energy, in 2018. The company has since made a $2.6 billion investment in Phase 1 of the Pikka development, which will include three drill sites, a central processing facility, an operations center, and various infrastructure such as roads, bridges, and pipelines.
The production of Phase 1 is expected to be 80,000 barrels per day, helping to refill the Trans Alaska Pipeline System and contribute to the Alaskan economy. Governor Mike Dunleavy has called the project part of a "renaissance on Alaska's North Slope."
Santos is aiming for low carbon emissions from Pikka production as part of their goal of net zero by 2040. To this end, they have made agreements with Native corporations to deliver carbon offset projects.
However, the project's development is not without controversy. ConocoPhillips, a rival oil company, has appealed a state permit concerning the use of access roads. There is a dispute between Oil Search and ConocoPhillips over access roads for Pikka, with Oil Search seeking a state permit that treats the roads as public right-of-way instead of private property.
Despite these challenges, Senator Lisa Murkowski and Senator Dan Sullivan have expressed their support for the project. Senator Murkowski thanked Santos for the go-ahead decision, stating that the Pikka project will create jobs for Alaskans, while Senator Sullivan, who previously played a role in the Pikka development, expressed his excitement about seeing the project come to fruition.
Pikka Phase 1 is located west of ConocoPhillips' Kuparuk unit, near the Colville River village of Nuiqsut. As the project moves forward, it promises to bring significant economic benefits to the region while also striving for a responsible and environmentally-friendly approach to oil production.
Read also:
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Two farmers in Zambia take legal action against two firms with Chinese connections, alleging an ecological disaster caused by their operations.
- Deepening EU-India relations despite apprehensions regarding Moscow connections
- Ongoing Transition Towards Cleanliness
