Pikka field begins oil production on Alaska's North Slope

Pikka field began producing oil on Alaska's North Slope this week, according to Alaska's News Source. The field is expected to add about 80,000 barrels of oil per day to state production.

Alaska North Slope production stood at 457,715 barrels per day as of May 17. West Coast Alaska North Slope crude was priced at $119.72 per barrel on May 15, up $3.55.

Projections indicate Pikka could become the state's second-largest oil field. State Department of Natural Resources presentation materials described Pikka-Horseshoe expected production at less than 120,000 barrels per day in an operator-release-based estimate.

Santos Limited leads the joint venture with a 51 percent interest. Repsol holds the remaining 49 percent. The companies announced a final investment decision for Pikka Phase 1 in August 2022.

Alaska Public Media reported in February that first sellable oil from Pikka was expected soon. Work was still underway to finish testing and install remaining equipment.

Pikka Phase 1 has been described as one of the most significant North Slope developments in more than 20 years. The Department of Natural Resources has tracked Pikka as part of the North Slope's major future production additions.