The Pikka oil project on Alaska’s North Slope is nearing production, with first oil expected before March 31, project leaders confirmed. Peter Laliberte Santos, vice president for business development in Alaska, announced the accelerated timeline at the Alaska Oil and Gas Association’s conference.
He said Pikka’s Phase 1 will soon deliver 80,000 barrels daily, strengthening trans-Alaska pipeline and boosting the state’s economy. Located 11 miles northeast of Nuiqsut, the $3.1 billion project has reached 91% completion, and major facilities were recently transported to the site.
The seawater treatment plant fabricated in Indonesia travelled 7,000 miles before arriving at the Arctic coast, marking a critical milestone for completion. Nearly 1,000 workers remain on site finalizing infrastructure, as 120 miles of pipelines and over 20 wells position the field for operation.
Phase 2, already planned, could increase production to 120,000 barrels daily, making Pikka the largest field since Alpine peaked in 2007. According to state forecasts, Pikka and ConocoPhillips’ Willow project together could boost Alaska’s oil production 40% within a decade, reaching 665,000 barrels daily.
Analysts estimate Phase 1 will provide Alaska with $200 million in royalties during its first year, supporting the Alaska Permanent Fund. By 2034, revenues are projected to approach $300 million before declining as production slows, though Phase 2 could extend significant earnings further.
State leaders highlighted the importance of new revenue, though some cautioned against overspending, noting educational and infrastructure needs remain underfunded despite improvements. Mark Myers, former USGS director, called Pikka a symbol of change with newer companies like Santos and Repsol diversifying Alaska´s oil industry.
He added that advanced seismic technology enabled Pikka’s discovery, unlocking potential for further subtle oil plays across the mature but resource-rich North Slope. Laliberte emphasized that the project´s rapid progress reflects major logistical success, as over 350 prefabricated modules and barges supported construction efforts.
