Sable Offshore Corp. Pursues Offshore Strategy

By Greg Peters • Tuesday, September 30 12:07 • Permanent Link

Sable Offshore Corp. (NYSE: SOC) has announced an alternative offtake strategy in its updated investor presentation. The company has submitted its formal request for approval of restart plans for the Las Flores pipeline system to the California Office of the State Fire Marshal (OSFM). The company has satisfied all operational conditions to resume petroleum transportation through the onshore pipeline, as set forth in the federal consent decree.

The company is pursuing an offshore storage and treating vessel (OS&T) strategy to provide access to domestic and global markets via shuttle tankers for federal crude oil produced from the Santa Ynez Unit (SYU) in the Pacific Outer Continental Shelf area. Sable has stated that continued delays related to the onshore pipeline will prompt a pivot back to a leased OS&T strategy, which was utilized to process SYU production in federal waters from 1981 – 1994.

Over this time period, the SYU produced over 160 million barrels of oil equivalent. The onshore pipeline is expected to provide immediate economic relief to California residents and play a large role in stabilizing local refineries. In the alternative option, the company would have the freedom to market its production outside of the state of California and aggressively pursue all legal remedies.

Sable expects to execute an OS&T lease contract by year-end 2025 for delivery in Q3 2026. Sales from all SYU platforms are expected to begin in Q4 2026, with comprehensive oil production rates of over 50,000 barrels of oil per day utilizing the OS&T within the SYU federal leases.

Sable Offshore Corp. is an independent oil and gas company headquartered in Houston, Texas, focused on responsibly developing the Santa Ynez Unit in federal waters offshore California. Today the company's shares have moved -6.18% to a price of $18.53. If you want to know more, read the company's complete 8-K report here.

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