On September 30, 2025, Sable Offshore Corp. announced that it had formally submitted its Request for Approval of Restart Plans to the California Office of the State Fire Marshal (OSFM) for the Las Flores Pipeline System. The company stated that it had satisfied all operational conditions required to resume petroleum transportation through the onshore pipeline, as set forth in the Federal Consent Decree, thereby clearing the way for OSFM approval of its restart plans.
In the same announcement, Sable disclosed that it is pursuing an Offshore Storage and Treating Vessel (OS&T) strategy to provide access to domestic and global markets via shuttle tankers for federal crude oil produced from the Santa Ynez Unit. The company expects to execute an OS&T lease contract by year‑end 2025, with sales from all SYU platforms projected to begin in Q4 2026. The OS&T option would allow the company to market production outside California and is estimated to support comprehensive oil production rates of over 50,000 barrels of oil per day once the vessel is operational.
The dual‑track approach offers Sable a critical fallback if the onshore pipeline restart is delayed or denied. By securing an OS&T strategy, the company can generate revenue from the Santa Ynez Unit while awaiting OSFM approval, thereby mitigating the risk of prolonged cash burn and providing a clearer path to profitability. This strategic shift is material to investors as it directly impacts the company’s ability to monetize its assets and improve its financial outlook.
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