The leader of an Australia-based company advancing one of two major upcoming North Slope oil projects said the development is mostly complete and on track to be producing oil in less than two years.
Kevin Gallagher, the managing director and CEO of Santos, said the Pikka project is nearly 60% complete, with more than 40 miles of pipeline installed. He spoke by video at the Alaska Oil and Gas Association’s conference in Anchorage.
“Our results to date are consistent with predrill expectations,” he said. He expects the project to be sending 80,000 barrels of oil down the Trans Alaska Pipeline System by the first half of 2026. Pikka is one of two major projects — along with Willow, being developed by ConocoPhillips — that the state expects to raise Alaska oil production.
Gallagher said the company created 2,200 well-paid jobs in the past winter construction season. And he said there are more than 225 people working in the company’s new office in downtown Anchorage.
He said the company’s move into the tower at 5th Avenue and F Street was the first major corporate office to move into the city’s downtown in more than a decade.
He said the company’s Alaska senior management team has more than 500 years of experience in the oil and gas industry, with more than 300 of those in Alaska.
“We deliberately focused on recruiting Alaskans to join our team: Over 80% of our team were already residents when they came on board,” he said, adding that more than 95% of the company’s North America employees live in Alaska.
Gallagher emphasized the effect the company’s presence has in the state.
“Their kids are in your schools. They shop in your stores. They play in your sports teams. And they volunteer in your communities,” Gallagher said.
Gallagher said Pikka wouldn’t be possible without support from the nearby village of Nuiqsut. He said the company built three major community projects in the village, spending $59 million, including a bridge, a boat launch on the east bank of the Colville River and improvements to the village wastewater treatment facility.
Gallagher also talked about the company’s goal of reducing the emissions impact of the project, including carbon capture and storage.
“We see great potential in Alaska’s outstanding geological resources to establish the state as a global leader in the CCS industry,” he said.
Gallagher was scheduled to attend the conference, but had to join remotely due to a family issue, he said.