Sable Offshore Corp. Disputes Regulatory Claims and Defends Compliance Record
Company Affirms Full Compliance with State Waivers Following Allegations
Sable Offshore Corp. (NYSE: SOC) has formally responded to the California Office of the State Fire Marshal (OSFM) following recent claims regarding the company’s adherence to state compliance waivers. In a letter dated October 22, 2025, OSFM raised concerns about alleged deficiencies, prompting Sable to assert that it remains fully compliant based on both the letter of the waivers and extensive previous discussions with OSFM experts. The company stated its intention to supplement its response and emphasized its confidence in swiftly resolving what it views as a misunderstanding.
Santa Ynez Unit: Restart in Production but Sales Still on Hold
Since the May 2025 restart, the Santa Ynez Unit has resumed production, marking a key operational milestone for Sable after a decade-long hiatus that began in June 2015. However, despite this restart, the company has not yet sold commercial quantities of hydrocarbons. Oil produced from the Santa Ynez Unit is currently being transported to storage tanks at Sable’s Las Flores Canyon processing facility, awaiting the resumption of petroleum transportation via the Las Flores Pipeline System. This continued delay is tied to pending regulatory approvals for both the pipeline system and a proposed Offshore Storage and Treating Vessel.
| Key Dates & Details | Status |
|---|---|
| June 2015 | Santa Ynez Unit shut down; no sales since pipeline closure |
| May 2025 | Production restarts, oil stored onshore |
| October 22, 2025 | OSFM alleges deficiencies; Sable responds in disagreement |
| Current | Awaiting pipeline approval; no commercial sales |
Forward-Looking Uncertainty Centers on Regulatory and Operational Approvals
While Sable emphasizes its commitment to regulatory compliance and safety, significant uncertainties remain. The future resumption of sales hinges on receiving necessary approvals to recommence pipeline transportation and/or the implementation of alternative storage solutions offshore. Without these approvals, there can be no assurance regarding when or if sales will resume, keeping a cloud of uncertainty over the company’s near-term outlook.
Risk Factors: Operational and Market Challenges Persist
Sable’s management highlighted a range of risks—including fluctuating operating costs, supply and equipment constraints, regulatory changes, and the geographical concentration of assets—that could impact results. Additionally, the restart of production does not guarantee the restart of commercial sales or revenue in the near future. Investors should be mindful of the risks described in Sable’s most recent annual and quarterly SEC filings.
Key Takeaway: Regulatory Resolution and Pipeline Restart Are Pivotal
At present, Sable Offshore Corp. maintains that it is in compliance with state waivers and is actively working with California regulators to resolve the current dispute. With oil already being produced and stored, the crucial next step remains obtaining the green light for the Las Flores Pipeline or alternative transportation to turn production into commercial sales. Stakeholders should continue monitoring developments, as the outcome of regulatory discussions and infrastructure approvals will determine Sable’s operational and financial trajectory.
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