8/25/2023 0 Comments Oil search pikka![]() In a March 23 letter to the natural resources department reviewed by Reuters, ConocoPhillips said it proposed a $95 million one-time payment for use of its roads, in line with road fees Oil Search proposed two years ago when it sought debt funding from Alaska's state development bank to build roads and bridges for Pikka. The land permit "does not acknowledge the KRU's rights of ownership and investments in the road infrastructure", a ConocoPhillips spokesperson said in emailed comments to Reuters. ![]() "We always prefer and encourage private entities to work out mutual agreements for things like surface access amongst themselves on fair commercial terms, and continue to expect that will ultimately be the long term solution here," Derek Nottingham, the department's oil and gas director, said in an emailed comment to Reuters.Ī Santos spokesperson said the company was satisfied with the state's decision and still aims to have Pikka ready for a final investment decision in "mid-2022".ĬonocoPhillips has the right to appeal the issue of the land permit by April 18. The department approved the land use permit on March 29 to smooth the way towards development of the Pikka project until the companies reach a road use agreement. A guessing game Pikka project appears on track for 2025 first oil, Alaska office intact Kay Cashman Petroleum News Santos Ltd.’s recent presentation of its successful 2021 results and a brief 2022 guidance led to a number of articles bemoaning the future of the Alaska North Slope Pikka project. 9 letter to the Alaska Department of Natural Resources.Īfter rebuffing a ConocoPhillips' proposal for Oil Search to pay $95 million for long-term use of its Kuparuk roads, Oil Search applied to the Department of Natural Resources for a permit to access those roads, which are on state land. Santos needs access to Kuparuk's roads for its operations, the company said in a Feb. The Pikka project, the biggest new oil prospect on Alaskan state land in decades, is next to ConocoPhillips' Kuparuk River Unit (KRU) oil fields. In February, it flagged that the project would be ready for a final investment decision by mid-year. Santos is the operator of the Pikka oil project on Alaska's North Slope, acquired during its takeover of Oil Search last year. “As we move into our disciplined growth phase and integrate the Oil Search business, we will maintain our strong focus on costs, and ensure we live by our disciplined, low-cost operating model to drive shareholder returns,” he said on Wednesday.ConocoPhillips, the largest oil producer in Alaska, is seen as a potential buyer of that stake. The project would also offer expansion benefits from efficient and phased project execution and modular facilities, Santos previously said.įor the 2022 financial year, Santos has targeted a capital spend of $300-million in Alaska, including the potential development of the Pikka project.ĬEO Kevin Gallagher told shareholders that the company would be disciplined in taking further financial investment decisions, ensuring that its growth projects, including Pikka, fitted with the company’s strategy and met its commercial and economic hurdles, including equity interest levels and joint venture alignment. The purchase included interests in the Nanushuk oil field in the Pikka Unit, one of the largest conventional US oil. ![]() Phase 1 of the Pikka development will consist of 80 000 bl/d from a single drill site development, with the project to benefit from existing pipeline and other infrastructure. ormed nearly a century ago, Papua New Guinea-based Oil Search entered Alaska’s oil and gas scene in 2018 with a 400 million purchase of North Slope oil leases from Armstrong Energy and GMT Exploration. “Value from the Pikka project may be delivered through sell-down processes and/or participation in project development,” Spence told shareholders.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |