(WO) – Sable Offshore Corp. has resumed oil transportation across key segments of the Santa Ynez Pipeline System (SYPS) and is ramping production across its California offshore assets, with additional volumes expected later this year.
The company said operations through pipeline segments 324 and 325 have restarted under its pipeline integrity management program, supporting increased output from the Santa Ynez Unit.
Currently, 40 wells across Platform Harmony and Platform Heritage are producing an average of about 750 bpd per well. As additional wells are brought online—eventually reaching 74 active wells—average output is expected to stabilize at approximately 700 bpd per well.
Sable also expects Platform Hondo to begin production in June 2026, with estimated peak output of approximately 10,000 bpd.
The company plans to invest roughly $180 million in capital spending through the remainder of 2026, targeting facility upgrades, maintenance and production optimization across its offshore portfolio.
Beyond operations, Sable is advancing financial and legal initiatives tied to its California assets. The company said it is pursuing a refinancing of its senior secured term loan in the second quarter and is evaluating federal credit support options, alongside implementing a commodity hedging program.
Sable is also engaged in multiple legal proceedings, including efforts to recover damages tied to regulatory disputes. The company is seeking at least $347 million in damages from the California Coastal Commission and more than $100 million from Santa Barbara County related to permitting issues.
In parallel, the U.S. Department of Justice is moving to terminate or modify a consent decree related to the assets, with a court hearing scheduled for June 1, 2026.
“Sable is pleased to update its stakeholders on our progress… and [we] are proud to have produced over 1 million barrels from the Santa Ynez Unit to date,” said Chairman and CEO Jim Flores.
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