Sable Offshore announces alternative offtake strategy

Sable Offshore (SOC) has submitted its formal Request for Approval of Restart Plans to the California Office of the State Fire Marshal for the Las Flores Pipeline System. As conditions precedent, the company satisfied all operational conditions to resume petroleum transportation through the Onshore Pipeline as set forth in the Federal Consent Decree, clearing the way for approval of Sable’s Restart Plans by the OSFM. Among these satisfied conditions are anomaly repairs, safety valve installations, control room enhancements, and the production of all supporting documentation and analyses. Today, in its updated investor presentation, Sable announced that it is also pursuing an Offshore Storage and Treating Vessel strategy to provide access to domestic and global markets via shuttle tankers for federal crude oil produced from the Santa Ynez Unit in the Pacific Outer Continental Shelf Area. Sable continues to work diligently with the State of California to safely and responsibly resume petroleum transportation through the Onshore Pipeline in accordance with its Federal Consent Decree, which was entered into by several state and federal agencies. Continued delays related to the Onshore Pipeline will prompt Sable to fully 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 provides immediate economic relief to California residents and will play a large role in stabilizing local refineries. In the second option, the Company would have the freedom to market its production outside of the State of California. Additionally, Sable would plan to aggressively pursue all legal remedies. Sable will continue to pursue both paths in parallel. In the OS&T option, the company expects to execute an OS&T lease contract by year end 2025 for delivery in Q3 2026. Sable would then expect to begin sales from all SYU platforms during Q4 2026 with expected comprehensive oil production rates of over 50,000 barrels of oil per day utilizing the OS&T within the SYU federal leases.