As Alaska’s largest oil producer, ConocoPhillips continues to invest in projects on the North Slope.
In October 2015 first oil was announced at our long-anticipated CD5, the first oil development on Alaska Native lands in the National Petroleum Reserve-Alaska. CD5, an extension of the Alpine field, is expected to produce up to 16,000 barrels of oil a day. In April, ConocoPhillips announced that funding was approved for additional wells and associated on-pad infrastructure to increase production at CD5. The additional wells and infrastructure will bring CD5 to its full design and permit capacity. The cost of the project is estimated at approximately $190 million, which includes construction, drilling and well tie-ins.
New Kuparuk Drill Site 2S (DS2S) celebrated first oil in October 2015. Both DS2S and CD5 came online early and under budget.
We have two new-build drilling rigs: a rotary rig called Doyon 142 that arrived on the Slope in winter 2016, and a coiled tubing drilling rig called Nabors CDR3, that is slated to begin drilling later this year.
In November, 2015, ConocoPhillips announced that funding has been approved for Greater Mooses Tooth 1 in the NPR-A. Production from GMT1 is expected to come online in late 2018 with approximately 30,000 barrels of oil per day, gross, at peak production.
This past winter we also had an active exploration program, with three wells drilled in the NPR-A.
These new projects represent significant new investment, and create hundreds of jobs during construction. The CD5, DS2S, and GMT1 developments represent $2.7 billion (gross) in new North Slope projects. Peak gross production when all of these projects are on stream is estimated at 30,000 to 40,000 BOPD. The passage of tax reform in 2013 has been a significant factor in ConocoPhillips' Alaska investment decisions.