SYDNEY, May 19, 2026, 05:04 (AEST)
Santos shares jumped 2.66% to A$8.09 on Monday, lifted by news that oil is now flowing at the Pikka project in Alaska. The stock got as high as A$8.12 after the company confirmed “first oil” from the field. Santos heads into Tuesday’s ASX session with fresh momentum.
Energy shares rose on Monday even as the wider Australian market lost ground. The S&P/ASX 200 dropped 1.45% to 8,505.3, but the energy sector added 1.46% as crude prices climbed and Woodside Energy advanced, ABC News reported.
Brent crude climbed about 2% to $111.41 a barrel on Monday in New York, as traders kept their eyes on supply risk linked to the Iran war and tension near the Strait of Hormuz. Santos is pushing new oil onto a market that’s already seen steady crude prices. Investors now see a more direct path to cash after years of spending on projects. Reuters
Santos said Pikka phase 1 is now producing, with output running through a Lease Automated Custody Transfer meter, the system used for measurement before oil is sent into a sales line. The company plans to ramp up to 20,000 barrels a day in the coming weeks. The target is a gross plateau of 80,000 barrels a day in the third quarter.
Santos reported first oil after drilling 28 development wells. Of those, 21 were stimulated and brought online as planned. The company expects to see sales revenue in two to three months after first oil. Santos and Repsol will take turns loading tanker shipments at the Port of Valdez.
Santos CEO Kevin Gallagher described Pikka as “a tier-one asset in one of the world’s super basins,” saying the company is shifting from building the project to its “disciplined, low-cost operating model.” Gallagher said Quokka and Horseshoe could be next growth moves for the North Slope, depending on how appraisal, planning and final investment decisions play out.
Santos’ announcement comes with oil prices high and a better production outlook, Shaw and Partners’ Craig Sidney told Reuters. Sidney, a senior investment adviser, called the production boost meaningful and “significantly positive.” Reuters
Santos picks up more oil exposure with the Alaska project alongside its mostly gas portfolio. It runs Pikka with a 51% stake, and Repsol owns the other 49%. Repsol CEO Josu Jon Imaz said starting up the field would help bring back Alaska oil after falling output for years. Cinco Días
Woodside, which is bigger than Santos among Australian energy names, finished up 2.94% Monday. Oil prices gave the sector a lift. That’s notable, since investors bought energy while miners, industrials and the rest of the ASX sank. ABC News
Pikka output won’t be steady at first. Santos said production will come on and off as late commissioning work continues and key subsystems go live. Actual flows hinge on the seawater plant and water injection system starting up. If oil prices slip or the ramp slows, Monday’s move in the stock could reverse.
Alaska start-up moves ahead after Santos kept full-year production and sales targets in the April quarter, even with a temporary gas facility outage and bad weather. That update sent investors focusing on Barossa and Pikka, the two projects now driving most of the growth story. Reuters
