Santos Eyes Double Output at Alaska Pikka as Water Injection Hits 40,000 bbl/d
Key Takeaways
- Seawater injection at Nanushuk Drillsite-B commenced on 26 August 2026, with milestone testing successfully completed and current injection rates running at approximately 40,000 bbls/d.
- Pikka is currently producing around 40,000 bbl/d (gross), with Santos targeting a doubling to approximately 80,000 bbl/d by end of Q3 2026 — a plateau milestone now just weeks away.
- Santos operates the Pikka Unit with a 51% interest, meaning it captures the majority of economic upside as production scales toward plateau.
- Seawater injection is the technical prerequisite for safely bringing additional production wells online — with it now operational, the ramp-up path is a function of progressive well additions rather than any unresolved technical hurdle.
- CEO Kevin Gallagher confirmed the project remains firmly on track, describing Pikka as a "world-class asset" with pressure support now established across the reservoir.
Pikka project hits critical production milestone
Santos has announced the successful commencement of seawater injection at Nanushuk Drillsite-B (NDB) of the Pikka oil project on Alaska’s North Slope, marking a significant step toward plateau production. On-specification water export from the seawater treatment plant began on 18 August, building inventory across the approximately 75-kilometre seawater pipeline connecting the Beaufort Sea to the project site. Injection into the reservoir commenced on 26 August, and milestone testing has since been successfully completed, with current water injection at around 40,000 bbls/d.
Continuous production at Pikka commenced in June 2026, with production wells now delivering around 40,000 barrels of oil per day (gross). The project is targeting plateau production of approximately 80,000 bbl/d (gross) by the end of Q3 2026, meaning Santos is aiming to approximately double current gross output from the project within weeks.
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Why seawater injection matters — and what it unlocks
As oil is extracted from a reservoir, the natural pressure driving hydrocarbons toward the surface begins to drop. Left unmanaged, declining reservoir pressure slows production rates and can reduce the total volume of oil ultimately recovered. Water injection counteracts this by pumping water into the reservoir to maintain pressure, effectively replacing the volume of oil being removed.
At Pikka, seawater injection is not a routine operational step; it is the technical prerequisite for safely bringing additional production wells online. The logic is sequential: injection establishes pressure support across the reservoir, that pressure support creates the conditions for new wells to produce efficiently and safely, and additional wells flowing at capacity is what closes the gap between current output and plateau production.
Without injection online, the ramp-up to ~80,000 bbl/d could not proceed. With it now operational and milestone testing complete, Santos can bring production wells online progressively over the coming weeks.
Kevin Gallagher, Managing Director and Chief Executive Officer
“Seawater injection is a critical step in unlocking Pikka’s production capacity. With pressure support now established and wells coming online progressively, we continue to target plateau production rates at the end of the third quarter of 2026.
“Pikka is a world-class asset and seawater injection, together with continued efficient drilling and operations, keeps us firmly on track to deliver its full potential,” Mr Gallagher said.
Pikka by the numbers — project snapshot
| Metric | Detail |
|---|---|
| Project location | Alaska’s North Slope, USA |
| Operator | Santos (51% interest in the Pikka Unit) |
| Partner | Repsol (49% interest) |
| Continuous production commenced | June 2026 |
| Current production | ~40,000 bbl/d (gross) |
| Current water injection rate | ~40,000 bbls/d |
| Seawater pipeline length | ~75 kilometres (Beaufort Sea to project site) |
| Plateau production target | ~80,000 bbl/d (gross) |
| Plateau timing target | End of Q3 2026 |
| Stakeholder partners | Contractors, State of Alaska, Alaska Native corporations and local communities |
Path to plateau — what comes next
The remaining steps between now and Santos’ targeted plateau production rate are well-defined:
- Additional production wells brought online safely and progressively over the coming weeks following injection commencement
- Continued efficient drilling and operations across the Pikka project
- Plateau production of approximately 80,000 bbl/d (gross) targeted by end of Q3 2026
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Investment case — why this milestone matters for Santos shareholders
Plateau production at Pikka would represent an approximate doubling of the project’s current gross output. Santos operates the project and holds a 51 per cent interest in the Pikka Unit, meaning it captures the majority of the economic benefit as production grows toward that target.
CEO Kevin Gallagher has described Pikka as a “world-class asset,” and the project’s scale supports that characterisation. Delivered in partnership with contractors, the State of Alaska, Alaska Native corporations and local communities, it reflects the kind of stakeholder alignment that long-life resource projects depend on.
What makes this milestone particularly relevant for investors right now is timing. This announcement was released on 2 September 2026, and the plateau target is end of Q3 2026 — placing the milestone just weeks away. The seawater injection milestone de-risks the path materially: with pressure support established and additional wells planned to come online progressively, the key technical enabler of the ramp-up is now in place.
Investors can treat the end-of-quarter plateau target as a live, trackable catalyst. Santos has not disclosed financial guidance or revenue forecasts in connection with this milestone, but the operational picture is clear. The project is running, injection is online, and the gap between current output and plateau production is now a function of progressive well additions rather than any unresolved technical hurdle.
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