Sable Offshore updates Santa Ynez Unit plan, may expand offshore oil shipping

Sable Offshore Corp. (NYSE:SOC), currently trading at $19.65 with a market capitalization of $1.96 billion, announced Thursday an update to its Development and Production Plan (DPP) for the Santa Ynez Unit, according to a statement based on a Securities and Exchange Commission filing. InvestingPro data indicates the company faces significant operational challenges, with negative EBITDA of $285 million in the last twelve months.

The company submitted the revised plan to the U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM). The update includes information on the execution of activities described in the approved DPP and additional operating details reflecting the long production history at the Santa Ynez Unit. The plan outlines the use of offshore processing, storage, and offloading of crude oil.

Sable’s current DPP allows for the use of an Offshore Storage and Treating Vessel (OS&T) to process oil produced from the Santa Ynez Unit. Under this option, oil would be loaded into shuttle tankers in federal waters off the coast of Santa Barbara and sold at refineries outside California. This method serves as an alternative to supplying California refineries via the onshore Las Flores Pipeline System, which has been fully restored and hydrotested.

The company stated that it continues to work with the State of California to resume petroleum transportation through the Las Flores Pipeline System in accordance with a Federal Consent Decree. Sable noted that continued delays in approving the restart plans for the pipeline would lead the company to shift fully to its accelerated OS&T strategy.

Sable Offshore Corp. is incorporated in Delaware and is headquartered in Houston, Texas. The company’s common stock is listed on the New York Stock Exchange under the symbol SOC.

This information is based on a press release statement included in a recent SEC filing.

In other recent news, Sable Offshore Corp. has submitted a formal Request for Approval of Restart Plans for its Las Flores Pipeline System to the California Office of the State Fire Marshal. The company has reportedly met all operational conditions required by the Federal Consent Decree, which include completing anomaly repairs, installing safety valves, and enhancing control rooms. Additionally, Sable Offshore is seeking over $347 million in damages from the California Coastal Commission due to delays caused by a Cease and Desist Order that halted its repair program.

The company claims it completed the necessary repairs in February 2025 after receiving authorization from Santa Barbara County permits. In another development, Sable Offshore stock saw a rise after Benchmark reiterated its Buy rating and maintained a $47.00 price target, citing the company’s "Plan B" involving an offshore storage and treating vessel. Furthermore, a partial court ruling has allowed Sable to proceed with preparatory steps for restarting the pipelines, although the actual restart is pending further compliance. This ruling enables Sable to continue its preparations for the pipeline’s eventual restart.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.