Sable Offshore Restarts Santa Ynez Unit Production, Eyes Full Pipeline Reactivation and Oil Sales by July
Sable Offshore Corp. (NYSE: SOC) has announced the successful restart of oil production at the Santa Ynez Unit (SYU) as of May 15, 2025, with oil now flowing to its Las Flores Canyon (LFC) facility. This marks a significant milestone in Sable’s efforts to return to full operations following a decade-long shutdown.
The restart comes alongside the completion of anomaly repairs on the Las Flores Pipeline System—the Onshore Pipeline—which were finalized on May 18, 2025. These repairs fulfill a critical requirement under the Consent Decree governing the safe reactivation of the Onshore Pipeline. To date, seven of the eight pipeline segments have passed hydrotesting. The final test is expected shortly, clearing the way for full system restart and resumption of commercial oil sales by July.
Strong Initial Production and Performance at SYU
On May 15, Sable began flowing oil from six wells on Platform Harmony at an initial rate of approximately 6,000 barrels per day. Early well test results have exceeded expectations, outperforming metrics from May 2015—the time of the initial shut-in—when the SYU produced roughly 45,000 barrels of oil equivalent per day.
As of May 18, around 30% of Platform Harmony’s 32 producing wells had been tested, with the remainder scheduled for evaluation in the coming days. The company anticipates bringing online an additional 44 wells on Platform Heritage in July and 26 wells on Platform Hondo by August.
Sable expects to fully utilize the ~540,000 barrels of storage capacity at LFC by mid-June in preparation for resumed oil sales.
Updated Production and Cost Guidance
Sable Offshore has significantly revised its production and cost guidance for the second half of 2025, reflecting stronger-than-expected well performance and improved operational efficiency. The company now anticipates net average daily production in the range of 40,000 to 50,000 barrels of oil equivalent per day, nearly doubling its previous forecast of 20,000 to 25,000. Lease operating expenses have also been revised downward, with updated estimates between $11.00 and $13.50 per barrel, a substantial improvement from the earlier range of $17.00 to $19.00. Cash general and administrative costs are now projected to fall between $2.50 and $3.50 per barrel, compared to prior expectations of $4.50 to $5.50. Capital expenditures remain unchanged, with total expected spending between $70 million and $90 million, covering both facilities upgrades and well workovers. This updated guidance is based on recent Harmony platform test results, reservoir simulations, and the planned restart of production from Platforms Heritage and Hondo in the third quarter of 2025.
A Milestone for California Energy Security
“SOC is proud to have safely and responsibly achieved first production at the Santa Ynez Unit,” said Jim Flores, Chairman and CEO of Sable Offshore. “The impressive well tests from Platform Harmony confirm the prolific nature of the Santa Ynez reservoir after ten years of dormancy. This milestone reflects the dedication of our team and stakeholders, and the cooperation of our local community and regulators. We’re committed to delivering reliable energy to California while continuing to build momentum for our long-term development plan.”
As the company moves toward full operational capacity, Sable’s restart of the SYU positions it as a key player in California’s energy landscape, with enhanced production potential and a firm focus on safe, efficient, and environmentally responsible operations.
