Article author:
Associated Press
ANCHORAGE, Alaska (AP) — Two oil and gas companies have announced plans to invest $2.6 billion in developing a major oil field on Alaska's North Slope.
Australia-based Santos and Spain-based Repsol made the announcement, which was praised by state political leaders, The Anchorage Daily News reported.
Santos owns his 51% stake in the Pikka project, which the company said Tuesday would bring his investment to $1.3 billion. Santos last year acquired Papua New Guinea's Oil Search, which was working to advance the project.
Santos said in a statement that the funding will cover the early stages of development of the Pikka field, which is expected to start flowing 80,000 barrels of oil daily by 2026. said.
If developed, oil fields on national land east of the Alaska National Petroleum Reserve could significantly facilitate the flow of oil through the Trans-Alaska pipeline system. The development could also generate billions of dollars in state and local tax revenues, primarily through royalties to the state.
Another major North Slope oil prospect, ConocoPhillips' Willow Project, is being held back by lawsuits and a new environmental review.
Alaska Senators Lisa Markowski and Dan Sullivan applauded the plans of the Picca Project. Republican Gov. Mike Dunleavy said, "We will continue the renaissance on Alaska's North Slope."
Both companies said they would make efforts to offset and reduce fossil fuel emissions, including using natural gas instead of diesel fuel during operations.
To fully develop Phase 1, 45 wells will need to be drilled from one well pad. Related infrastructure includes production facilities and pipelines, Repsol said in a statement.
