ConocoPhillips plans to spend big

Posted: Thursday, February 17, 2005

 

  Laborers work aboard a ship full of ConocoPhillips liquefied natural gas bound for Asia. In the Cook Inlet area, ConocoPhillips has 55 employees, some at the Liquefied Natural Gas plant in North Kenai, some on the North Cook Inlet platform off Tyonek and some in Beluga. Clarion file Photo by M. Scott M

Laborers work aboard a ship full of ConocoPhillips liquefied natural gas bound for Asia. In the Cook Inlet area, ConocoPhillips has 55 employees, some at the Liquefied Natural Gas plant in North Kenai, some on the North Cook Inlet platform off Tyonek and some in Beluga.

Clarion file Photo by M. Scott M

ConocoPhillips, Alaska's largest producer of North Slope crude oil and natural gas, plans to spend $1.5 billion in Alaska in 2005.

Of that total, the company has budgeted $700 million for exploration and production capital projects and $870 million to operate and maintain its Alaska assets.

Included in the company's capital projects are the development of the Fjord and Nanuk satellite fields near the Alpine oil field, Prudhoe Bay development and the West Sak heavy oil field.

ConocoPhillips also plans to drill four exploration wells on the North Slope.

In the Cook Inlet area, ConocoPhillips has 55 employees, some at the Liquefied Natural Gas plant in North Kenai, some on the North Cook Inlet platform off Tyonek and some in Beluga.

In 2004, the company produced 63 million standard cubic feet of natural gas a day from the Beluga field and 94 million standard cubic feet a day from North Cook Inlet. The total, 157 million cubic feet per day, has the equivalent of 26,000 barrels of oil.

The natural gas produced from the Tyonek platform is primarily used for the Kenai LNG plant.

In the entire state, ConocoPhillips produced 323,000 barrels of crude oil a day in 2004 and 162 million cubic feet of gas per day.

According to company spokesperson Dawn Patience, ConocoPhillips has substantial ownership positions in the Prudhoe Bay Unit, the Kuparuk River Unit, the Beluga River Unit, the North Cook Inlet Unit and the Colville River Unit.

She said ConocoPhillips also continues to be Alaska's number one explorer and the largest holder of federal and state leases.

"The company holds interest in 1.9 million gross acres of leases in the National Petroleum Reserve - Alaska, and nearly 3 million gross undeveloped acres in total," Patience said.

Just north of Anchor Point, ConocoPhillips completed drilling on an exploratory well site known as the Hansen well. Because the well is considered an exploration prospect, the company has not released any information about it.

The company had reported previously that the onshore directional drill targeted oil two to three miles offshore in the Cosmopolitan prospect.

The company's Kenai LNG plant, the only export plant in North America, exports 1.3 million metric tons of LNG to Asian markets. The plant is owned jointly by ConocoPhillips at 70 percent and Marathon with the remaining 30 percent.

The plant's two customers are Tokyo Electric Power Company Inc. and Tokyo Gas Company Limited. ConocoPhillips' export license is set to expire March 31, 2009.

"As with any of its assets, (ConocoPhillips) is always considering various long-term options," Patience said.

ConocoPhillips at a Glance

Company headquarters: Houston, Texas

ConocoPhillips Alaska office: (907) 276-1215

Production in 2004: 162 million cubic feet of natural gas a day 323,000 barrels of oil a day

2004 capital expenditures in Alaska: $580 million

Local contact: Lindsey Clark, 776-8166

Number of employees: 55 on the Kenai Peninsula; 915 statewide

Web site: www.conocophillips.com

Company outlook: ConocoPhillips continues to be Alaska's No. 1 explorer and the largest holder of federal and state leases.

The company holds interest in 1.9 million gross acres of leases in the National Petroleum Reserve - Alaska, and a total of nearly 3 million gross undeveloped acres.



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