Sable Offshore Corp. (NYSE: SOC) anticipates the restart of Platform Hondo in the fourth quarter of 2026, following the completion of reconstruction and internal operational commissioning. The Houston-based company stated that it has modernized the platform from a manually controlled facility to one utilizing up-to-date technology and safety standards.
The pending restart is contingent on final review and approval of instrumentation, control, and safety commissioning submissions by the Marine Minerals Administration (MMA). Sable expects these final reviews and additional safety testing to take place in October 2026. The company reports that it has worked with the MMA throughout the recommissioning period.
To maximize production ahead of the restart, Sable plans to accelerate four additional Perforation Addition (Perf Add) operations. These operations are expected to result in completed Perf Adds on nine of the platform's 15 production wells, an increase from the previously expected five. Each Perf Add is estimated to add approximately 600 barrels of oil per day to base well production at a cost of roughly $800,000 per operation.
| Metric | Value |
|---|---|
| Estimated incremental production per Perf Add | ~600 barrels of oil per day |
| Estimated cost per Perf Add | ~$800,000 |
| Projected completed Perf Adds pre-restart | 9 of 15 wells |
Sable is also upgrading the Las Flores Canyon Midstream Processing Facility (LFC) to increase emulsion processing capacity. Currently, LFC processes approximately 80% of the productive capacity of Platforms Harmony and Heritage. The planned upgrades are intended to allow LFC to handle production from all three Santa Ynez Unit platforms at their full productive capacities. Sable expects these upgrades to be completed before Platform Hondo restarts, which should enable continuous operations and reduced downtime in the fourth quarter of 2026.
Preliminary estimates indicate that oil sales averaged approximately 32 thousand gross barrels of oil per day over July and August 2026. September oil sales volumes are expected to reach approximately 34 thousand gross barrels of oil per day. Sable is working with midstream and downstream partners to alleviate third-party sales constraints experienced in late August and September.
Nominations to the company's crude purchaser are expected to rise to an average of 38 thousand gross barrels of oil per day in October 2026. The estimated exit rate for October 2026 is approximately 45 thousand gross barrels of oil per day, prior to the addition of Hondo volumes. Sable expects increasing oil sales rates from the end of October through the remainder of the year.