SYDNEY, May 4, 2026, 03:03 AEST
Oil Search Alaska, the U.S. arm of Santos Limited, is pushing ahead with plans to enlarge the permitted C pad at the Pikka oil project up on Alaska’s North Slope—another sign that first oil isn’t far off for the Australian firm. According to Petroleum News on Sunday, the application would cover the C pad, which hasn’t been built yet. Drilling for now remains focused on the A pad.
Oil Search Alaska is seeking changes to its Pikka project—previously known as Nanushuk—citing new safety and logistical requirements for drilling, completions, and overall operations, according to a U.S. Army Corps of Engineers public notice. The window for public comments runs through May 25. A drill pad refers to a gravel site where wells are sunk and gear is deployed.
Why does this matter? Pikka and Barossa LNG are the linchpins for Santos, which needs these developments to finally convert years of outlay into real output. Production and sales guidance for 2026 remains unchanged—still sitting at 101 million to 111 million barrels of oil equivalent—even after Santos missed on first-quarter revenue and faced hitches at Barossa.
The oil tape tells the story on timing. OPEC+ signed off Sunday on a 188,000 barrel-per-day quota hike for June, but according to Reuters, most of that bump only exists on paper. Disruptions around the Strait of Hormuz are still choking Gulf flows, keeping prices over $125 a barrel.
According to the Corps notice, the planned Pikka activity calls for roughly 46,500 cubic yards of gravel fill, creating lasting impacts on 3.44 acres of wetlands. The project would extend the NDC pad, tweak its access road, and set up two new pipeline valve pads. The company says these updates are meant to bolster drilling, completions, and field logistics.
Santos shares last changed hands at A$8.02 on the ASX, ticking up 0.25%. The latest company filings have centered on employee share rights and related securities, with nothing fresh on operational guidance. Documents detail 665,283 share acquisition rights issued, 9,517 ordinary shares transferred following rights conversion, and 241,097 rights that lapsed after not meeting conditions.
Saul Kavonic, who leads energy research at MST Marquee, pointed to “supportive oil price moves” as a key boost for Santos shares after the first-quarter update. In a note, Kavonic added that investors seemed willing to look past the revenue miss, focusing attention instead on the upcoming start-up of Barossa and Pikka—projects now central to Santos’ near-term growth story. Reuters
Santos, too, has been pushing its location case. At the April annual meeting, Chair Keith Spence pointed to unrest near the Strait of Hormuz, calling it a “strategic advantage” for Australian LNG in the Asia-Pacific. The company, for its part, said the Iran war hasn’t touched its LNG shipping routes. Reuters
Investors looking for a yardstick tend to point to Woodside Energy, the bigger rival to Santos. Woodside managed to top its first-quarter revenue estimates—this despite dealing with cyclone setbacks—and reaffirmed its 2026 production targets. Realised prices moved higher as spot markets picked up, offering the sector a clearer read on how rising prices could impact earnings.
The Pikka filing remains just a permit issue at this stage, not the green light itself. Wetland impacts could attract attention once comments open, and if Gulf supply picks up or delays hit Pikka or Barossa again, the broader market argument could lose steam. Barclays bumped its Brent outlook for 2026, citing the Hormuz bottleneck, but that depends on the disruption dragging on to keep barrels scarce.
Santos now faces a tight lineup: Corps sign-off for Pikka C pad, first oil from Pikka, Barossa’s production ramp, and OPEC+ on June 7. With shares circling A$8 again, it’s not really about reserves anymore—deliverables and deadlines are what count.
