Sable Offshore jumps after California OSFM approves implementation plan

Shares of Sable Offshore (SOC) are sharply higher after the company disclosed in a regulatory filing earlier that on December 17, the California Office of the State Fire Marshal approved Sable Offshore’s implementation of enhanced pipeline integrity standards for the intrastate pipeline segments, Lines CA-324 and CA-325A/B. “In recognition of these robust measures, OSFM granted state waivers of certain regulatory requirements related to cathodic protection and seam weld corrosion for the Pipeline. The state waivers represent a significant milestone achievement in satisfying the requirements of the federal court ordered consent decree, which includes the granting of these waivers by the OSFM as a condition for restarting the Pipeline. Sable expects to begin hydrotesting the Pipeline in January 2025 in advance of a potential restart of production from the Santa Ynez Unit offshore platforms and the associated Las Flores Canyon processing facilities in the first quarter of 2025,” the company stated. In morning trading, shares of Sable are up $4.08, or 21%, to $23.72.