Sable Offshore Corp. received a PHMSA emergency special permit on December 23 2025 for pipeline segments 324 and 325 of its Santa Ynez Pipeline System. The permit authorizes the company to implement enhanced integrity‑management practices and sets specific operational conditions for the two segments, which were formerly known as Line 901 and 903.
The approval marks a pivotal regulatory milestone for Sable, which has been working to restart production from the Santa Ynez Unit since the 2015 Refugio spill. By clearing this hurdle, the company can move forward with the remaining repair and compliance work needed to bring the pipeline online, bringing it closer to the target of a second‑quarter 2025 production restart and the transition from a cash‑burning phase to a revenue‑generating one.
Sable’s financial position underscores the importance of the permit. The company reported a net loss of $110.4 million in Q3 2025, driven largely by restart‑related operating expenses and non‑cash interest charges, and carries short‑term debt of $896.6 million. Restarting the pipeline and selling stored oil are critical to generating the cash flow needed to service debt and reduce losses. The permit therefore has a direct impact on the company’s ability to improve its financial health.
CEO Jim Flores said the permit “paves the way for the next phase of our restart plan and demonstrates federal support for our operations.” The emergency special permit is valid for up to 60 days, after which Sable will need additional approvals to maintain operations. The company has already begun the repair work and expects to resume commercial sales within the permit’s validity window.
The announcement was met with a positive market reaction as investors welcomed the regulatory clearance. The permit removes a key regulatory obstacle, but Sable still faces ongoing challenges from California state agencies and environmental groups, and will need to secure further approvals to sustain long-term operations.
The shift to federal oversight by PHMSA is a strategic move to navigate the complex California regulatory landscape. While the permit eases immediate operational constraints, the company must continue to address state‑level concerns and demonstrate compliance with environmental and safety standards to secure a permanent operating license.
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