The oil and gas industry supports an estimated 16% of Alaska’s jobs, and the Pikka Project on Alaska’s North Slope is fast becoming a major contributor to that number.

Along with other oil and gas ventures in the state, including the Willow Project, the Pikka Project is projected to create thousands of jobs during its construction phase. Each of these jobs further boosts the Alaska economy. In fact, research suggests that each dollar earned in Alaska oil and gas job wages supports $4 in other wages in the state.

In addition to its contributing to Alaska’s economy, the Pikka Project is also poised to buoy Alaska’s overall oil output, with production predicted at 80,000 barrels per day by 2026.

In this article, we’ll take a closer look at the Pikka Project, including its history, its future, and its anticipated impact on Alaska’s economy and transportation industry.

What Is the Pikka Project?

The Pikka Project is a joint venture, operated by the Australian energy company Santos, to extract oil from the Pikka field on Alaska’s North Slope. Ownership rights are split between Santos (51%) and the Spanish energy company Repsol (49%)

The project lies ~50 miles west of Deadhorse and ~6 miles from Nuiqsut, just west of ConocoPhillips’ Kuparuk River Unit oil field.

Map of RECENT BROOKIAN DISCOVERIES NANUSHUK AND TOROK FORMATIONS

(Source)

Pikka Project Timeline

2013

The Pikka field’s potential is discovered by Repsol and Armstrong Oil & Gas when drilling the Qugruk 3 discovery well.

2015

Further drilling reveals even greater potential than previously anticipated—an “estimated 768 million barrels of recoverable oil” in the Nanushuk formation under the Pikka field.

2019

Armstrong Oil & Gas and GMT Exploration sell their stakes in the Pikka field to Oil Search, a Papua New Guinea energy company. 

2021

Oil Search merges with Santos, bringing the 51% ownership stake under their banner. 

2023

Work starts on the infrastructure that will support the project, and Phase 1 drilling begins, with approximately six to eight wells projected to be drilled and completed by January 2024. 

2026

The first oil was delivered in mid 2026, at about 20,000 barrels per day and with a projection of 80,000 barrels per day. 

Why Is the Pikka Project Significant?

Group wellheads and valve armature , Gas valve

Beyond the project’s economic impact on Alaska (more on that in a moment!), the Pikka discovery’s significance lies in the sheer potential it offers.

The Pikka field sits on top of the Nanushuk formation, a layer of the earth’s crust that dates to about 100 million years ago. Estimates suggest that the Nanushuk formation may hold as many as 1.2 billion barrels of recoverable light oil, which has been called “the largest onshore find in the United States since the ’80s.“

Ultimately, Santos believes that the Pikka Project will be access 400 million barrels of those resources—a significant number.

How Will the Pikka Project Impact Alaska Economically?

Santos has pledged to invest a total of $2.6 billion during Phase 1 of the Pikka Project. This investment will benefit Alaska’s economy in two key areas:

Increased State and Local Tax Revenue

Like the Willow Project, the Pikka Project is poised to deliver significant cash flow in state and local tax revenue, largely through royalties paid to the state. This revenue can be used to fund vital local services, including education, emergency response, and community and social support programs.

Job Creation for Alaska Residents

For the Pikka Project, Santos agreed to prioritize Alaskan businesses and workers. Approximately 75% of the total projected budget will be spent with companies operating in Alaska, and 98% of Santos employees live in Alaska. Phase 1 of the project is expected to create more than 2,600 jobs during the construction phase and 500 jobs during the operation phase.

The Alaska economy will see the biggest bump from 2022-2025, during the Pikka Project construction period, when the bulk of the $2.6 billion investment will be spent.

What About the Environmental Impact the Pikka Project Will Have on Alaska?

Santos has committed to delivering Pikka as a net-zero project by 2040. In order to achieve this milestone, Santos has entered into Memorandums of Understanding with Alaska Native Corporations to deliver carbon offset projects. Potential solutions include a forestry management project, carbon abatement solutions, and carbon capture systems.

While some critics aren’t convinced, Santos remains committed to its pledge.

What Kind of Infrastructure Will the Pikka Project Require?

During Phase 1 of the project, 45 wells will be drilled from a single well pad to keep the footprint as small as possible. Additionally, the project will use the current Kuparuk Oil Pipeline and the Trans-Alaskan Pipeline System (TAPS).

The majority of construction on the Pikka Project will occur through 2025, with oil production beginning in 2026. In addition to the drill sites, Santos will also build two processing facilities, an operations center, 35 miles of pipeline, 25 miles of roads, and a seawater treatment plant.

Rather than constructing an entirely new road system, Santos has also been negotiating with ConocoPhillips to use the roads they own as part of the nearby Kuparuk River Unit.

The Logistics Behind Projects Like Pikka

One thing we’ve learned from supporting projects like Pikka is that the logistics are just as critical as the construction itself. Every piece of equipment, every shipment of materials, and every employee arriving on-site plays a role in keeping a project moving forward.
 
Supporting large-scale energy projects in Alaska requires more than simply shipping freight from point A to point B. It requires careful planning, knowledge of Alaska’s transportation network, and the ability to coordinate multiple transportation modes while working around seasonal weather, remote destinations, and constantly evolving project schedules.
 
At Royal Alaskan Movers, we’ve had the opportunity to support the Pikka Project through both employee relocations and project logistics, along with many other oil, gas, and industrial projects throughout Alaska. Those experiences have given us a firsthand understanding of what it takes to successfully move people, equipment, and materials in one of the most challenging logistics environments in North America.
 
Whether we’re coordinating the movement of oversized equipment, arranging ocean freight from the Lower 48, delivering construction materials, or helping relocate project personnel, our focus is always the same—keeping projects moving safely, efficiently, and on schedule.
 
Our commercial logistics team regularly supports customers with:

Project logistics planning and coordination

Heavy equipment transportation

Construction materials and project cargo

Oversized and overweight freight

Ocean, truck, and air freight services

Warehousing and distribution

Employee and workforce relocations

Deliveries to remote Alaska communities and project sites

While every project has its own unique challenges, decades of operating in Alaska have taught us that local knowledge, reliable communication, and experienced logistics partners can make all the difference.
 

What’s Next for the Pikka Project in Alaska?

To learn more about the Pikka Project, the Santos North America website is a good starting point.

At Royal Alaskan Movers, our operations will continue as usual. If you have any concerns about disruptions or timing for future projects of your own, don’t hesitate to reach out to our team.

Finally, if you need help moving heavy equipment, construction materials, or other items to Alaska, we’d be happy to help. No project is too difficult or too complex for our experienced team, and we’ve got the capability to move freight anywhere in the state. Just get in touch to start a conversation.

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