Sable Offshore's Litigation Setback

By Bobby Samwell • Wednesday, October 15 12:04 • Permanent Link

Sable Offshore Corp. (NYSE: SOC) has recently provided an update on its ongoing litigation with the California Coastal Commission. In the tentative ruling released on October 14, 2025, the court indicated that it would deny Sable's claims against the Coastal Commission. The company intends to appeal this ruling to the California Court of Appeal if adopted by the Santa Barbara Superior Court.

The company completed its anomaly repair program and hydrotesting of the Las Flores pipeline system in May 2025, in accordance with the federal consent decree. Sable intends to continue its pursuit of the writ of mandate in the Court of Appeal, as well as declaratory relief and inverse condemnation claims in excess of approximately $347 million.

Jim Flores, Chairman and CEO of Sable, mentioned that the tentative ruling has no impact on Sable's business strategy of either resuming petroleum transportation through the Las Flores pipeline system or selling its Santa Ynez unit production through an offshore storage & treating vessel (OS&T).

The company is concerned about the state's energy complex and its potential consequences on California's economy if refineries continue to close due to the lack of domestic production. Sable continues to work diligently with the state of California to safely and responsibly resume petroleum transportation through the Las Flores pipeline system in accordance with the federal consent decree.

Sable plans to pursue the OS&T strategy, regardless of California's approval of the resumption of petroleum transportation through the Las Flores pipeline system, as they believe it will allow them to refinance their existing term loan.

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. As a result of these announcements, the company's shares have moved -4.94% on the market, and are now trading at a price of $17.69. If you want to know more, read the company's complete 8-K report here.

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