ConocoPhillips plans more development

ConocoPhillips recently submitted permit applications to regulatory agencies to advance a viscous oil development targeting the West Sak reservoir in the Kuparuk River Unit. The development, called 1H NEWS (Northeast West Sak), is the third new project initiated by ConocoPhillips since the legislature passed the oil tax reform bill last spring.

The 1H NEWS project would include a nine-acre extension to an existing drill site to support new wells and associated facilities. Project approval is anticipated in late 2014, with construction beginning in 2015. Construction would continue through 2016, with first oil in early 2017. Cost for the project is estimated at $450 million with an estimated peak production of approximately 9,000 barrels of oil per day. The project will provide around 150 jobs during construction.

In 2013, after passage of oil tax reform, the company also announced plans to pursue development of Greater Mooses Tooth #1 in the National Petroleum Reserve-Alaska and Drill Site 2S in the Kuparuk River Unit.

“Combined with 1H NEWS, these three new projects would represent an investment of about $2 billion, significant new production, and jobs for hundreds of workers during construction,” said Trond-Erik Johansen, president of ConocoPhillips Alaska. “In addition to our plans for these new projects, we have also added two rigs to the Kuparuk fleet. These rigs are already adding production and providing several hundred new jobs for Alaskans.”

ConocoPhillips believes the improved business climate created by tax reform will continue to create jobs for Alaskans and Alaska businesses, add new revenue for the state and add tens of thousands of barrels of new production from the North Slope. The company expects to have more productionadding investments to announce soon.

ConocoPhillips capital budget for 2014 in Alaska is reflects the highest level of investment since the 1980s.

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