An Open Letter to Sable Offshore Corp
Set an Oct 10 Decision Deadline - If OSFM Isn’t Signed, Execute the Offshore “Nuclear Option”
To the Board of Directors and Executive Team:
We support completing the pipeline restart. But shareholders need a hard decision gate and a fully financed alternative if that milestone slips again.
If OSFM approval is not received by 5:00 p.m. PT on Friday, October 10, 2025, we urge SOC to immediately execute an offshore storage/offtake solution (FSO/FPSO)—the “Nuclear Option”—with anchor equity and DOE loan financing at the project level.
In our view, it will have been abundantly clear by October 10 if OSFM continues to withhold approval despite completing all of the technical reviews. October 10 is one month since submission and we think shareholders should have clarity going forward.
As management explained in its recent 8-K disclosure, the only downside to the FPSO route is that the timeline of the restart is delayed, but the certainty that comes from never dealing with California again is priceless. In addition, an equity stake from the Trump administration along with the intent of full federal support will give investors the confidence needed to ride through the journey together.
We don’t think it’s in the best interest of shareholders for the long term to give a timeline past Oct 10.
For other shareholders reading our letter, if you agree with our view, we strongly urge you to voice your support to the management team as well.
Sincerely,
HFI Research
According to Bloomberg the Trump administration plans to allow permits for oil drilling and other work on “priority conventional energy projects” to continue during the government shutdown, while work on some renewable energy projects will halt. So it appears that government shutdown will likely not delay Plan B if it has Trump admin support.
Hi Wilson,
Does the company have to wait some minimum amount of time for OSFM approval to support bringing a takings claim later? Does OSFM have to either formally accept or formally reject Sable's application? Or can OSFM just not decide indefinitely? If OSFM does not have to formally reject Sable's application, Sable may have to give OSFM enough time to reasonably support concluding that OSFM is never going to approve the application to support bringing a takings claim later. I am just speculating. Wondering if you have also researched this. It could impact how long Sable is willing to/should wait before pursuing Plan B.