Current weather

  • Scattered clouds
  • 54°
    Scattered clouds

ConocoPhillips still top producer

Posted: Friday, February 17, 2006

ConocoPhillips still churns out more oil and natural gas than any other Alaska producer.

In 2005, the company produced about 314,00 barrels of oil a day and 169.71 million cubic feet per day of natural gas from North Slope and Cook Inlet fields.

The liquefied natural gas plant in Nikiski, which ConocoPhillips operates with Marathon Oil, again produced 1.3 million metric tons of LNG in 2005, essentially flat with 2004. The LNG is sold to Japan, but the contracts with Tokyo Electric Co., Inc. and Tokyo Gas Co. Ltd. are set to expire in 2009.

Both ConocoPhillips and Marathon say further LNG contracts — and the export license needed to sell the gas — are possible, but not certain.

“The gas supply outlook for Cook Inlet will be a factor in that decision,” ConocoPhillips spokesperson Dawn Patience wrote via e-mail.

In Cook Inlet, the company continued its operations on its Tyonek and Beluga platforms, which provided 51 billion cubic feet of natural gas to the LNG plant, with most of the gas from the Tyonek platform going to the LNG plant. Marathon supplied 26 billion cubic feet of gas for the plant.

ConocoPhillips did pass a few benchmarks not related to the plant, too.

In 2005, the Kuparuk field on the North Slope produced its 2 billionth barrel of oil. ConocoPhillips operates the facilities there and owns a 55 percent share of the oil produced. When the first barrel was pulled from the field in 1981, the field was estimated to have only 2 billion barrels.

Two satellite drill sites were being built on the North Slope in 2005. The sites, both within 8 miles of the Alpine oil field on the border of the National Petroleum Reserve, are on the Fjord and Nanuq oil fields and should produce 35,000 barrels of oil per day by 2008. Production is scheduled to begin in late 2006. The oil will be produced at the existing Alpine facilities.

The West Sak heavy oil field also caught some of the nearly $800 million ConocoPhillips spent in capital expenditures in Alaska in 2005. The expansion project, which saw the drilling of 13 more wells, is expected to add 40,000 barrels per day of production to the previous West Sak totals.

The company spent nearly $1 billion for operations and maintenance.

ConocoPhillips, along with BP, also signed a deal with the state of Alaska to use ultra low sulfur diesel fuel in all its engines by 2008. New federal regulations state that certain highway engines must run using the fuel by July 2006 and nonhighway engines must comply by 2010.

Headquarters: Houston, Texas

Alaska Office: (907) 276-1215

Production in 2005: 314,000 barrels of oil a day/169.71 million cubic feet per day of natural gas

2005 capital expenditures in Alaska: $800 million for new and ongoing projects

Number of employees: more than 50 on the Kenai Peninsula, 950 in Alaska

Web site: www.conocophillips.com

Company Outlook: ConocoPhillips will participate in at least seven exploration projects in 2006, four operated by ConocoPhillips and three by others.



CONTACT US

  • 150 Trading Bay Rd, Kenai, AK 99611
  • Switchboard: 907-283-7551
  • Circulation and Delivery: 907-283-3584
  • Newsroom Fax: 907-283-3299
  • Business Fax: 907-283-3299
  • Accounts Receivable: 907-335-1257
  • View the Staff Directory
  • or Send feedback

ADVERTISING

SUBSCRIBER SERVICES

SOCIAL NETWORKING

MORRIS ALASKA NEWS