North Slope oil project is on track, Santos head tells industry gathering

Santos CEO Kevin Gallagher speaks via a video connection astatine nan Alaska Oil and Gas Association’s convention connected Aug. 29, 2024, astatine nan Dena’ina Center successful Anchorage. (Photo by Andrew Kitchenman/Alaska Beacon)

The leader of an Australia-based institution advancing 1 of 2 awesome upcoming North Slope lipid projects said nan improvement is mostly complete and connected way to beryllium producing lipid successful little than 2 years.

Kevin Gallagher, nan managing head and CEO of Santos, said nan Pikka task is astir 60% complete, pinch much than 40 miles of pipeline installed. He said by video astatine nan Alaska Oil and Gas Association’s convention successful Anchorage. 

“Our results to day are accordant pinch predrill expectations,” he said. He expects nan task to beryllium sending 80,000 barrels of lipid down nan Trans Alaska Pipeline System by nan first half of 2026. Pikka is 1 of 2 awesome projects — on pinch Willow, being developed by ConocoPhillips — that nan authorities expects to raise Alaska lipid production.

Gallagher said nan institution created 2,200 well-paid jobs successful nan past wintertime building season. And he said location are much than 225 group moving successful nan company’s caller agency successful downtown Anchorage. 

He said nan company’s move into nan building astatine 5th Avenue and F Street was nan first awesome firm agency to move into nan city’s downtown successful much than a decade. 

He said nan company’s Alaska elder guidance squad has much than 500 years of acquisition successful nan lipid and state industry, pinch much than 300 of those successful Alaska. 

“We deliberately focused connected recruiting Alaskans to subordinate our team: Over 80% of our squad were already residents erstwhile they came connected board,” he said, adding that much than 95% of the company’s North America labor unrecorded successful Alaska. 

Gallagher emphasized nan effect nan company’s beingness has successful nan state.

“Their kids are successful your schools. They shop successful your stores. They play successful your sports teams. And they unpaid successful your communities,” Gallagher said. 

Gallagher said Pikka wouldn’t beryllium imaginable without support from nan adjacent colony of Nuiqsut. He said nan institution built 3 awesome organization projects successful nan village, spending $59 million, including a bridge, a vessel motorboat connected nan eastbound slope of nan Colville River and improvements to nan colony wastewater curen facility.  

Gallagher besides talked astir nan company’s extremity of reducing the emissions impact of nan project, including c seizure and storage. 

“We spot awesome imaginable successful Alaska’s outstanding geological resources to found nan authorities arsenic a world leader successful nan CCS industry,” he said.

Gallagher was scheduled to be nan conference, but had to subordinate remotely owed to a family issue, he said.