Sable Offshore shares surge on state waivers

Investing.com — Sable Offshore Corp (NYSE:SOC) stock soared 22% following the announcement that the California Office of the State Fire Marshal granted the company state waivers for its pipeline operations. The regulatory concessions relate to specific requirements for cathodic protection and seam weld corrosion for the Pipeline, comprising Lines CA-324 and CA-325A/B.

The waivers, announced on December 17, 2024, signify a pivotal compliance step with the federal court ordered consent decree, which includes these waivers as a condition for the restart of the Pipeline. Sable Offshore is now set to commence hydrotesting in January 2025 as part of the preparatory activities leading up to the anticipated resumption of production at the Santa Ynez Unit offshore platforms and Las Flores Canyon processing facilities in the first quarter of 2025.

Investors responded positively to the news, which marks a significant stride towards the operational reboot of key infrastructure for Sable Offshore. The company’s success in meeting enhanced pipeline integrity standards and obtaining the waivers is seen as a critical factor in its ability to resume production activities, which have been on hold pending regulatory compliance.

The market’s reaction underscores the importance of regulatory approvals in the energy sector, where compliance with safety and environmental standards is closely monitored. Sable Offshore’s progress in this area appears to be a strong indicator of its commitment to meeting these standards and advancing its operations responsibly.

As the company looks forward to hydrotesting and a potential production restart in the first quarter of 2025, investors will likely keep a close watch on Sable Offshore’s adherence to the timeline and any further regulatory developments that could impact the company’s operational trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.