NEWS BULLETIN

March 03, 1999 --- Vol. 5, No. 11March 1999

Six Alaska suppliers land six-year contract with BP

Alaska Supply Chain Integrators LLC said March 3 that it has signed a six-year agreement to provide supply chain management services to BP Exploration (Alaska) Inc.

Suppliers participating are Alaska Pump and Supply, Dowland Bach, Engineered Equipment Co., Fairmont Supply Co., Frontier Plumbing and Supply and Puget Sound Pipe and Supply.

Management of Alaska Supply Chain includes: Ronald Riesmeyer, president; Catherine Williams, general manager marketing and customer service; David Baker and Joseph Wiseman, alternating schedules as general manager North Slope material operations; and Scott Hawkins, general manager quality and continuous improvement.

In addition to suppliers named above, the additional 19 Alaska suppliers in the BPXA Alaska supply network will remain in place.

Donohue to head Spirit Energy 76, new head for agricultural products

John Donohue, formerly head of Unocal Corp.'s Alaska operations, has been named president of Spirit Energy 76, Unocal's Lower 48 exploration and production business unit.

Donohue will report to Timothy H. Ling, executive vice president North American energy operations, a member of the company's new four-person management committee.

Other members of the management committee include: Roger C. Beach, Unocal chairman and chief executive officer, John F. Imle Jr., vice chairman of the board of directors and Charles R. "Chuck" Williamson, executive vice president international energy operations.

Marty Miller will replace Donohue as the head of agricultural products. Miller, who has 30 years of operating and commercial experience, has been vice president new ventures Central Asia and Pakistan, based in Sugarland, Texas.

February Alaska North Slope production down 6 percent

February numbers from the Department of Revenue show Alaska North Slope production averaging 1,130,801 barrels a day (liquids and natural gas liquids), down 5.7 percent from an average of 1,198,787 barrels a day in January. Revenue's Division of Oil and Gas Audit noted two events adversely affecting production in February: shut in of the Badami field early in the month and a 52-hour closure of the Valdez terminal due to high winds the second week of the month.

Production was down across the board: Prudhoe Bay averaged 567,616 barrels a day of crude oil, down 5.9 percent from January, and 55,608 barrels a day of NGLs, down 6 percent from January. Kuparuk averaged 259,429 barrels a day in February, down 4.2 percent from January. Milne Point averaged 52,020 barrels a day, down 4.6 percent from January. Endicott averaged 52,705 barrels a day in February, down 0.6 percent from January. The Lisburne production center averaged 143,423 barrels a day, down 9.5 percent from January, and Cook Inlet averaged 30,018 barrels a day, down 7.2 percent.

BP ANS term price down 3 percent

BP America's term price for Alaska North Slope crude oil is $10.47 a barrel for March, down 32 cents a barrel (2.97 percent) from the February term price of $10.79 a barrel.

BP's January term price of $9.37 a barrel was the lowest since July 1986, when BP's West Coast term price was $9 a barrel.

The year-to-date average term price is $10.21 a barrel, down 31 percent from the comparable 1998 average of $14.84 a barrel. The March term price is 22 percent below the March 1998 term price of $13.35 a barrel.

BP produces the largest volume of North Slope crude oil and is the only producer to post term prices.


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