July 16, 2008
Wednesday

BP announced Monday that it had sanctioned the development of its Liberty prospect in the federal waters in the Beaufort Sea Outer Continental Shelf. BP will push the envelope of technology by drilling ultra extended reach wells, with the largest land rig in the world. This technology will minimize the impact of the Liberty development on the environment.

"I want to congratulate Alaska's oil industry and our Department of Natural Resources for these pro-development achievements," Governor Palin said. "Our state has the resources and the people to address the nation's energy needs. Alaska remains an attractive and inviting place for oil and gas industry investment. I look forward to more good news in the future."

When production begins in 2011, the state will share in the royalties paid by BP to the federal government. Under existing law, the state will receive 27 percent of the royalties or almost 5 million barrels over the life of the project. The state and other producers on the North Slope will also benefit from potentially lower tariffs on the TAPS pipeline. At its peak in 2014, Liberty will produce 40,000 barrels per day and contribute to an increase of 6 percent of total TAPS throughput.

BP's Liberty announcement comes along after a string of good news in Alaska's oil patch. ConocoPhillips last week announced "first oil" from its Qannik prospect in the Colville River Unit. Qannik production will peak in 2009 at 4,000 barrels per day. With potential expansion the prospect may yield over 25 million barrels. On June 13, 2008, Pioneer began production from its Oooguruk field. Oooguruk is a 90 million barrel oil field that will reach peak production of 20,000 barrels per day in 2010. Pioneer is one of the new independents now working in Alaska and is the only independent operator on the North Slope. Soon to follow Pioneer as operator of a new producing oil field is the major Italian oil company ENI which sanctioned the neighboring Nikiatchuq oil field in January 2008. Development of this oil field is now underway.

Source of News:

Office of the Governor
www.gov.state.ak.us

 

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