Sable Offshore Corp. has requested federal approval to use an offshore storage and treating (OS&T) vessel and shuttle tankers to ship crude oil produced on federal leases from the Santa Ynez Unit, which consists of three offshore platforms and the onshore Las Flores Canyon facility.
The company is pursuing an OS&T system as a potential alternative to using the existing onshore Las Flores Canyon facility and pipeline. Sable also stated that it has submitted its formal request to the California Office of the State Fire Marshal for approval of the company’s pipeline restart plans.
Sable has been involved in a long legal and political battle to restart the Las Flores Pipeline System, which is part of the Santa Ynez Unit and connects to refineries in the state. In addition to fines and lawsuits, including criminal charges, Governor Gavin Newsom recently signed into law a bill that includes provisions targeting Sable. SB 237 streamlines onshore oil permitting in Kern County and heightens oversight for producing offshore oil and restarting intrastate pipelines.
Sable stated in a press release that “[c]ontinued delays” related to the Las Flores Pipeline System will prompt the company to use an OS&T vessel strategy as was done for oil produced from the Santa Ynez Unit in federal waters from 1981 to 1994. Using a pipeline to ship the oil was considered a safer and less environmentally risky option at the time.
Sable is highly likely to receive federal approval to use an OS&T system, as the Trump administration supports offshore oil production. In May 2025, Sable announced that oil production from six wells on Platform Harmony had restarted. In July, the Interior Department called the restart of the Santa Ynez Unit, which had been shut down since the 2015 Refugio oil spill, a “significant achievement” in the Trump administration’s “Energy Dominance initiative.”
Sable’s Two-Option Strategy
Sable provided some details and estimates for the two options to offtake oil from the Santa Ynez Unit.
Las Flores Canyon and Pipeline System
The current Las Flores Canyon facility and pipeline system would use the onshore processing system and pipeline that was used for the Santa Ynez Unit from 1994 to 2015. The pipeline system feeds oil refineries though Lines 324 and 325. Sable cited this strategy as most beneficial to the California crude oil supply, stating that it had the potential to increase supply by 15% immediately. Sable argued that restarting the onshore pipeline “provides immediate economic relief to California residents and will play a large role in stabilizing local refineries.” It noted that this production would not require the capital investment that is needed for new onshore production elsewhere in California.
The company also noted that the processing and pipeline system would generate employment as well as revenue from income taxes, production taxes, and ad valorem taxes. The company stated that the pipeline complies with California’s Best Available Technology pipeline safety standard. Lastly, Sable estimates that, with the pipeline system, its first sales from the Santa Ynez Unit would be in the fourth quarter of 2025.
Sable stated in its recent release that it has satisfied all operational conditions to ship oil through the Las Flores Pipeline System as set forth in the federal consent decree. This includes anomaly repairs, safety valve installations, control room enhancements, and the production of all supporting documentation and analyses, according to the company.
Offshore Storage & Treating Vessel
Using the alternative OS&T permit and offtake method would revert to the method used prior to the building of the Las Flores Pipeline System. Sable stated that oil transported in this method would not be tied to California refineries but would instead be able to be marketed outside of California either domestically or internationally. Production would also not produce tax revenue, the company stated. Sable estimates that this method would require $100 million in capital investment in 2026 and its first sales from the Santa Ynez Unit would come in the fourth quarter of 2026.