Sable Offshore Resumes Oil Transportation

By Chris Stiles • Monday, March 16 11:43 • Permanent Link

Sable Offshore Corp. (NYSE: SOC) has announced the resumption of oil transportation through the Santa Ynez Pipeline System (SYPS) in compliance with the federal Defense Production Act of 1950 (DPA) order issued by the United States Secretary of Energy. The company expects to achieve a gross oil rate of 50,000 barrels per day (bbls/d) with first sales anticipated by April 1, 2026.

Prior to resuming transportation, the company had approximately 540,000 barrels of processed crude oil in storage at Las Flores Canyon (LFC), representing more than the line fill volume for the SYPS between LFC and Pentland Station.

Sable Offshore Corp. is also actively producing hydrocarbons from its platform Harmony at the Santa Ynez Unit, with plans for a production ramp-up. The company anticipates full production resumption at platforms Harmony and Heritage in March 2026, and at platform Hondo in June 2026.

Additionally, Sable Offshore Corp. and Pacific Pipeline Company (PPC) have filed a lawsuit against the California Department of Parks and Recreation, seeking declaratory relief to confirm their rights under the DPA order. The company is pursuing various financing options, including federal credit support, and plans to refinance its senior secured term loan, deploy its commodity hedging program, and evaluate shareholder return options after commencing first sales.

Jim Flores, Chairman and CEO of Sable Offshore Corp., emphasized the company's commitment to increasing the domestic supply of crude oil into the California market by approximately 17%, in alignment with the Defense Production Act executed on March 13, 2026. He expressed the company's dedication to working closely with the Department of Energy and the Trump administration to ensure the delivery of necessary energy for the security and defense of the country.

Sable Offshore Corp. is an independent oil and gas company headquartered in Houston, Texas, with a focus on responsibly developing the Santa Ynez Unit in federal waters offshore California. As a result of these announcements, the company's shares have moved 0.34% on the market, and are now trading at a price of $11.62. If you want to know more, read the company's complete 8-K report here.

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