Alaska
ANCHORAGE – ConocoPhillips Alaska today announced that Kuparuk viscous oil development 1H NEWS (Northeast West Sak) has begun producing oil two months ahead of schedule. Permitting for 1H NEWS was first announced in February 2014. The project was approved for funding and development March 4, 2015 and development drilling began in August 2017.
“1H NEWS is an exciting project for us,” said Joe Marushack, president of ConocoPhillips Alaska. “Viscous oil is more challenging to produce, but state-of-the-art technologies are allowing us to pursue projects like this that put more oil in the pipeline. This is yet another great example of what ConocoPhillips does well - bringing good projects online safely with new production and revenues for Alaska.”
1H NEWS involved a 9.3-acre extension to the existing Kuparuk Drill Site 1H and will consist of horizontal multi-lateral production wells supported by vertical injectors. In all, 19 new wells are planned. The state’s first penta-lateral well where all five laterals can be accessed has been drilled at 1H NEWS and is currently producing. 1H NEWS is expected to add about 8,000 barrels of oil per day (BOPD) (gross) to North Slope production at peak in 2018. The project supported roughly 150 jobs during the construction phases. Project cost is estimated at $400 million (gross), $60 million under its initial estimate. 1H NEWS is the largest investment in viscous oil at Kuparuk since 2004. Advances in technology, cost reductions, a positive business climate and improvement in oil price helped move this development forward. Other Kuparuk owners include BP Exploration Alaska, ExxonMobil and Chevron.
ConocoPhillips continues to make substantial investments in new projects on the North Slope. In early 2017, the company announced the Willow discovery which, subject to appraisal results and the choice of development scenario, could produce up to 100,000 BOPD. Construction at GMT1 has begun with an estimated cost to develop of approximately $900 million gross and peak production estimated at 30,000 BOPD gross. In addition, permits have been filed for GMT2, located about eight miles west of GMT1. GMT2 is estimated to cost more than $1 billion gross with peak production estimated at 25,000 to 30,000 BOPD gross. Both the GMT Unit and CD5 are operated by ConocoPhillips Alaska, Inc. (78 percent interest). Anadarko Petroleum Company (NYSE: APC) holds a 22 percent interest.
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About ConocoPhillips Alaska
ConocoPhillips has been leading the search for energy in Alaska for more than 50 years. We are committed to responsibly developing Alaska’s resources, providing economic opportunity for Alaska, operating at the highest safety standards and being good stewards of our community. For more information, visit www.conocophillipsalaska.com.
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Contacts
Natalie Lowman
907-263-4153 desk
907-229-9190 cell
n.m.lowman@conocophillips.com
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