HOUSTON–(BUSINESS WIRE)–Pacific Pipeline Company (PPC), a wholly owned subsidiary of Sable Offshore Corp., and its predecessors have maintained a cathodic protection and pressure maintenance program on Line 324/325 (formerly 901 /903) from the pipeline was shut down in 2015. The line was evacuated, cleaned, and preserved with inert nitrogen to maintain a corrosion-free state. According to the 2020 Consent Decree, signed by federal agencies, including the Department of Justice, the Pipeline Hazardous Materials Safety Administration and the Environmental Protection Agency, as well as California state agencies, the Department of Fish and Wildlife Silvestre, the Department of Parks and Recreation. , the State Land Commission, the Office of the State Fire Marshal, the Regional Water Quality Control Board and the Regents of the University of California”PPC conducted a comprehensive repair and maintenance program to restore the pipeline to its new condition. Prior to initiating this program, PPC employed state-of-the-art pipeline integrity analysis equipment to evaluate the internal and external condition of the pipeline. The results of this evaluation established the criteria for repairing the pipeline to meet the strict requirements of the Consent Decree.
PPC repair and maintenance work began in 2024 within the existing right-of-way of the previously disturbed PPC pipeline. While the Consent Decree requires repairing +/- 150 threshold anomalies in the pipe wall, PPC has repaired or is in the process of repairing +/- 100 threshold anomalies and additional repairs of +/- 50 pipe wall anomalies will be performed. threshold throughout the process. the entire 124-mile-long pipeline to leave the system as good as new. PPC has over 30 predominantly union pipeline repair crews performing these repairs and is currently working with all landowners and government agencies to complete this important work, with the pipeline expected to restart by the end of 2024. .
The California Coastal Commission (CCC) has requested additional information from PPC about its work and PPC is now actively engaging with CCC staff to respond to those requests. Repair and maintenance activities that are exempt from Coastal Act permit requirements have been carried out on the pipeline under existing Coastal Development Permits for the past 35 years, and PPC believes its recent work is within the scope of those historical activities. Pending further engagement with CCC personnel, PPC has moved all crews out of the coastal zone to other areas of the pipeline complex to proceed with remaining repairs and maintenance in accordance with the strict safety requirements of the Consent Decree, ultimately including a full hydraulic test of the pipeline to ensure it is as good as new before restarting oil and gas production. These tests will be conducted under the supervision of federal and California state agencies to ensure accuracy and compliance with the strict standards of the Consent Decree.
About Sable
Sable Offshore Corp. is an independent oil and gas company, headquartered in Houston, Texas, focused on the responsible development of the Santa Ynez Unit in federal waters off the coast of California. The Sable team has extensive experience operating safely in California.
Forward-looking statements
The information contained in this press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words could, should, may, believe, anticipate, intend, estimate, wait. , project, continue, plan, forecast, predict, potential, future, outlook and objective, the negative aspects of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements will contain such identifying words. . These statements are based on the current beliefs and expectations of Sable’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Factors that could cause Sable’s actual results to differ materially from those described in the forward-looking statements include: the ability to restart production of the Santa Ynez Unit assets and the cost and time required to do so; global economic conditions and inflation; higher operating costs; lack of availability of drilling and production equipment, supplies, services and qualified personnel; geographical concentration of operations; environmental and climate risks; regulatory changes and uncertainties; litigation, complaints and/or adverse publicity; privacy and data protection laws, privacy or data breaches, or loss of data; our ability to comply with laws and regulations applicable to our business; and other one-time events and other factors that can be found in Sable’s Annual Report on Form 10-K for the year ended December 31, 2023, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the Securities and Exchange Commission and are available on the Securities and Exchange Commission’s website (www.sec.gov). Except as required by applicable law, Sable undertakes no obligation to publicly release the result of any revision to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.
Disclaimers
Non-productive assets
The assets of the Santa Ynez Unit have not produced commercial quantities of hydrocarbons since said assets were closed in May 2015 when the only pipeline that transported hydrocarbons produced from said assets to the market ceased operations. There can be no assurance that the necessary permits will be obtained that would allow the pipeline to restart transportation and the assets to restart production. If production is not restarted by January 1, 2026, the terms of the asset acquisition with ExxonMobil (NYSE:) Corporation could result in the assets reverting to ExxonMobil Corporation without any compensation to Sable for doing so.
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Investors contact:
Harrison Breaud
Director of Finance and Investor Relations
IR@sableoffshore.com
713-579-8111
Source: Sable Offshore Corp.