Sable Offshore Corp. resumed oil transportation from the Santa Ynez Unit through the Santa Ynez Pipeline System on 14 March 2026, after receiving an order from US Secretary of Energy Chris Wright under the Defense Production Act.
The company said President Donald J. Trump signed an Executive Order on 13 March 2026 delegating certain authorities under the Defense Production Act of 1950 to the US Secretary of Energy. On the same day, the Secretary of Energy issued an order directing Sable Offshore Corp. to immediately prioritize and allocate pipeline transportation services for hydrocarbons from the Santa Ynez Unit through the Santa Ynez Pipeline System. Sable Offshore Corp. said it began shipping hydrocarbons from Las Flores Canyon to Pentland Station on 14 March 2026, with federal safety regulators present in observance.
According to the company, all federally produced barrels from the Santa Ynez Unit must flow through the Santa Ynez Pipeline System, up to the existing pipeline capacity of 200,000 Bbls/d. Sable Offshore Corp. said it completed its onshore anomaly repair programme and hydrotested all segments of the pipeline system in line with applicable requirements as of May 2025.
Before resuming transportation from Las Flores Canyon to Pentland Station, the company had about 540,000 barrels of processed crude oil in storage at Las Flores Canyon. It said this volume was more than the line fill volume for the pipeline route between the two points. The company also said it is fully staffed and will continue to implement the conditions of the Emergency Special Permit previously issued by the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration.
Sable Offshore Corp. said it is currently producing hydrocarbons from Platform Harmony at the Santa Ynez Unit, while wells are performing as expected. The company expects full production resumption at Platform Harmony and Platform Heritage in March 2026, and at Platform Hondo in June 2026. First sales are planned by 1 April 2026 at an expected gross oil rate of 50,000 Bbls/d.
The company also said that on 13 March 2026, Sable Offshore Corp. and Pacific Pipeline Company filed a lawsuit against the California Department of Parks and Recreation in the US District Court for the Central District of California. The lawsuit seeks declaratory relief regarding their rights and their ability to fulfil obligations under the DPA order. Sable Offshore Corp. said State Parks sent a letter on 14 March 2026 contesting those rights under the order.
The company said it is pursuing financing options, including federal credit support. It also plans to refinance its Senior Secured Term Loan, deploy its commodity hedging programme, and evaluate shareholder return options after first sales begin.
