ANCHORAGE (AP) -- Phillips Petroleum Co. said it plans to spend $807 million in capital projects for its Alaska oil business next year, down $18 million from this year's budget.
The Bartlesville, Okla.-based company said Tuesday that Alaska projects next year will include continued construction of double-hull tankers; further development of the Kuparuk and Prudhoe Bay fields and construction to boost capacity at its production plant for the new Alpine field.
Phillips estimates it is spending $825 million in Alaska this year. That does not include $117 million in interest and a one-time cost of expanding its ownership stake in the trans-Alaska oil pipeline, said Dawn Patience, a Phillips spokeswoman.
Next year's $807 million budget for Alaska projects is part of the company's $3.5 billion global capital budget.
About half of Phillips' global production comes from Alaska. Phillips is the state's largest oil company, producing almost 400,000 barrels of the state's daily 1 million barrel output. It has reserves at Prudhoe Bay and operates Kuparuk, Alpine and other North Slope fields.
Patience said Alaska spending will drop in part because the company plans to drill 10 North Slope wells, five fewer than it did this year. About half of next year's wells will be in the National Petroleum Reserve-Alaska, she said, located west of Kuparuk and Prudhoe Bay.
In addition, the company took the current low oil prices into consideration when putting next year's budget together.
While spending will decrease in 2002, Phillips has no plans to reduce staffing, Patience said. The company employs more than 900 people in Alaska.
Peninsula Clarion ©2015. All Rights Reserved.