ANCHORAGE, Alaska – ConocoPhillips Alaska Inc. today announced that the Kuparuk field expansion project Drill Site 2S (DS2S) has been sanctioned for funding by ConocoPhillips and the Kuparuk co-owners. Plans for construction will move forward. This is the first new drill site at Kuparuk in nearly 12 years, and it is expected to add about 8,000 barrels of oil per day gross at peak production.
“Drill Site 2S is one of the key projects that we announced after passage of SB 21,” said Trond-Erik Johansen, president ConocoPhillips Alaska. “This is in addition to the two rigs we have added to our North Slope drilling fleet as well as the new build drilling rig currently under construction. The positive investment climate we now have in Alaska has been an important factor in the increased investment levels.”
The approximately $500 million (gross) DS2S project includes a new gravel road and a new drill site, power lines, pipelines and other new surface facilities. ConocoPhillips began laying gravel for the project in the first quarter of 2014 in order to initiate facility construction in late 2014. Drilling is slated to begin in mid-2015, with first oil expected in late 2015.
In addition to DS2S and increased rig levels, since the passage of SB 21, the More Alaska Production Act, ConocoPhillips has also announced plans to pursue two other new projects on the North Slope. Permits for Greater Mooses Tooth #1 (GMT1) in the National Petroleum Reserve-Alaska were filed in July 2013. Plans for viscous oil development at Drill Site 1H North East West Sak (NEWS) in the Kuparuk Unit were announced in February 2014. Final approval for NEWS is planned for late 2014 and approval for GMT1, pending federal permit approvals, is planned for the first quarter of 2015. DS2S, GMT1 and NEWS have an estimated cost of about $2 billion (gross) and could add tens of thousands of barrels of oil per day to North Slope production by 2018. During construction, the three projects will employ hundreds of workers.
Other Kuparuk owners include BP Exploration, ExxonMobil and Chevron.
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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.
Media Contacts
Amy Burnett (Alaska)
907-265-1539
amy.j.burnett@conocophillips.com
Natalie Lowman (Alaska)
907-263-4153 desk
907-229-9190 cell
n.m.lowman@conocophillips.com
Andrea Urbanek (outside Alaska)
281-293-3472
andrea.urbanek@conocophillips.com
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