ANCHORAGE, Alaska – ConocoPhillips Alaska Inc. today announced that Kuparuk Drill Site 2S (DS2S) began producing oil, under budget and ahead of schedule. The project was approved for funding in October 2014, and production was originally expected in December. This is the first new drill site at Kuparuk in more than 12 years. DS2S is expected to add about 8,000 barrels of oil per day (BOD) gross at peak production.
“Drill Site 2S is one of the key projects that we announced after passage of tax reform,” said Joe Marushack, president ConocoPhillips Alaska. “The $475 million project created about 250 jobs during construction, with numerous contractor companies and trades involved. We thank them for their effort to bring the project in ahead of schedule and for their commitment to working safely.”
The DS2S project includes 14 new development wells, a new gravel road and new drilling pad capable of handling 24 wells, power lines, pipelines and other new surface facilities. The new drill site is in the southwestern section of the Kuparuk field. Drilling is ongoing on the fourth 2S well.
In addition to DS2S, since 2013 the company has added two drilling rigs at Kuparuk and two more new-build rigs are on order for delivery in 2016. Work is also finishing up on Alpine drill site CD5. ConocoPhillips has also announced plans to pursue viscous oil development 1H NEWS (North East West Sak) also at Kuparuk, and has received permits for the Greater Mooses Tooth #1 (GMT1) development in the National Petroleum Reserve-Alaska. A funding decision for GMT1 is expected later this year.
Marushack said DS2S, CD-5, GMT1, increased rig count and NEWS have an estimated cost of about $3 billion (gross) and could add 40,000 to 50,000 BOD (gross) to North Slope production by 2018. He noted that the passage of tax reform has been an important factor in the company’s decision to invest on the North Slope.
Other Kuparuk owners include BP Exploration (Alaska), ExxonMobil and Chevron.
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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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Media Contacts
Natalie Lowman (Alaska)
907-263-4153 desk
907-229-9190 cell
n.m.lowman@conocophillips.com
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