By SUZANNE DOWNING
May 17, 2026 – Energy giant Santos Limited has announced in Australia, where it’s Monday already, that first oil is now flowing from the long-awaited Pikka development on Alaska’s North Slope, marking one of the most significant milestones for Alaska oil production in years.
The Australia-based company said oil has now moved through the project’s Lease Automated Custody Transfer meter and into the Pikka sales oil line, officially establishing “first oil” for the Pikka Phase 1 project.
Santos operates the project with a 51% stake, while Spanish energy company Repsol owns the remaining 49%.
The startup begins what company officials described as a gradual commissioning and ramp-up process. Initial production is expected to climb to roughly 20,000 barrels per day over the coming weeks while key systems are brought online. Production at that level is expected to continue for about a month until the seawater treatment plant is operational and water injection begins.
The company said the field is expected to ultimately reach its planned production plateau of 80,000 barrels per day during the third quarter of 2026.
For Alaska, the announcement represents one of the largest new oil production additions to the Trans Alaska Pipeline System in decades and comes at a time when state leaders have increasingly warned about declining North Slope throughput and the long-term viability of TAPS.
At the time of first oil, Santos said 28 development wells had been drilled, with 21 already stimulated and flowed back “in line with pre-drill expectations.”
Initial tanker shipments from the Port of Valdez are expected within two to three months, with Santos and Repsol alternating shipments.
Congressman Nick Begich offered this comment about the historic news:
“People said the North Slope was over, the big discoveries had been made, and the basin was in decline. People were wrong. There is nothing inherently wise about a crowd, and no one ever built the future by following the herd. Bill Armstrong saw what so many others missed, believed in himself and his team, sold his vision to Santos (Oil Search) and Repsol, and today with their execution and commitment we celebrate the start of the long hoped for North Slope Renaissance,” Begich said.
“This is a lesson for Alaska. Our best days can be ahead, but only if we have the courage and conviction to do what others say is impossible. If we choose a timid path we will be guaranteed to live in someone else’s future, but if we are bold, we have the opportunity to build an incredible and prosperous future in every sense of the word,” he said.
Santos CEO Kevin Gallagher described Pikka as a “tier-one asset” inside what he called one of the world’s major petroleum basins.
“When the Pikka Field was discovered, the Nanushuk formation was recognised as a new generation play in an established global super basin,” Gallagher said in the company’s announcement. “We are proud to be at the forefront of unlocking its resource potential.”
Gallagher also pointed toward additional future North Slope development potential beyond Pikka itself, highlighting the company’s Quokka and Horseshoe prospects in the Nanushuk formation.
Earlier this year, Santos reported 177 million barrels of oil equivalent in contingent resources at Quokka alone.
The Pikka project has been closely watched in Alaska political and energy circles because it represents one of the few major new conventional oil developments capable of materially increasing North Slope production after years of decline.
The project also arrives amid intense legislative debate in Juneau over oil tax policy and broader energy development issues, including ongoing fights over LNG legislation, tax structures, and future investment competitiveness for Alaska resource projects.
Construction of Pikka required major infrastructure development on the western North Slope, including roads, pipelines, processing facilities, and drill sites west of the Colville River corridor.
The field is located roughly 30 miles south of Nuiqsut and taps the Nanushuk formation, a geologic play that has become one of the North Slope’s most promising modern oil discoveries.
When the project reaches its anticipated 80,000 barrels per day production target later this year, it will represent a meaningful boost to Alaska oil throughput and state revenues at a time when lawmakers are struggling to balance budgets and maintain Permanent Fund Dividend levels.
One thought on “Breaking: First oil flows from Pikka field on North Slope”
Didn’t NoShow Peltola claim to single handedly bring Pikka to life? (sarcastic remark). Ya know, she is all for Alaska. NOT!! She’s all about herself.