Sable Offshore Achieves Milestone With Restart Of Oil Production At Santa Ynez Unit
$SOC
Sable Offshore (NYSE:SOC) successfully restarted oil production at the Santa Ynez Unit (SYU) and began the flow of oil to Las Flores Canyon (LFC). This development comes after a decade-long hiatus, marking a pivotal moment for the company. The restart of production at SYU was facilitated by the completion of necessary repairs on the Las Flores Pipeline System, which had previously faced regulatory challenges.
The company expects to fill approximately 540,000 barrels of crude oil storage capacity at LFC by mid-June 2025, with oil sales projected to recommence in July 2025. The initial production has commenced from six wells on Platform Harmony at a rate of approximately 6,000 barrels of oil per day.
Sable Offshore has conducted extensive testing on these wells throughout May 2025, with results showing consistent performance improvements compared to their status at the time of shut-in in 2015. The company plans to expand production to additional wells on Platform Heritage and Platform Hondo in the coming months, with expectations set for July and August 2025, respectively.
In light of these developments, Sable Offshore has updated its production guidance for the second half of 2025. The company now anticipates a net average daily production ranging from 40,000 to 50,000 barrels of oil equivalent per day (BOE/D), a significant increase from the previous estimates of 20,000 to 25,000 BOE/D. This revised guidance reflects the successful initial results from the Harmony wells and the planned expansion of production capabilities.
The independent oil and gas company headquartered in Houston, Texas, focused on responsibly developing the Santa Ynez Unit in federal waters offshore California. The company’s team has extensive experience in safely operating in California and this recent achievement underscores its commitment to providing energy security to the State of California. As Sable Offshore moves forward with its operational plans, the company remains dedicated to upholding safety and enhancing its production capabilities to meet the growing energy needs of the region.
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