NEWS BULLETIN

December 06, 2000 --- Vol. 6, No. 56December 2000

Alaska North Slope gas producers agree on joint work program

BP Exploration (Alaska) Inc., Phillips Alaska Inc. and ExxonMobil Production Co. said today that they have agreed to a joint work program on an Alaska gas pipeline project.

Ultimately, the companies said, such a project would involve a pipeline system to deliver gas from Alaska's North Slope to Canada and the Lower 48 states.

Key activities agreed to by the companies over the next year include: conceptual design, project costing, permitting considerations, commercial structure and overall viability. The companies said the focus will be on route evaluation and selection leading to filing of applications with U.S. and Canadian regulatory agencies.

Costs and governance of the program will be shared equally among BP, ExxonMobil and Phillips. The companies said they believe that having the three major producers working together, combining their gas, financial and technical resources, gives the project its best chance for success. Participation by other companies will be considered in the future.

Initial work is expected to cost about $75 million with staffing from 50 to 100 full-time equivalent staff from the three companies and significant contractor support. The work effort will be primarily managed and staffed in Anchorage, with other potential joint work locations in Canada and the United States.

BP December term price sets record

BP's December term price for Alaska North Slope crude oil is $32.71 a barrel, a record high, up 3.32 percent from November's term price of $31.66 a barrel, and up 39 percent from the December 1999 term price of $23.61 a barrel.

The December price is the high for the year; the low for the year was a May term price of $23.96 a barrel.

The year-to-date average term price is $28.36 a barrel, up 72 percent from the comparable 1999 year-to-date average of $16.49 a barrel.

BP is the only North Slope producer to post a term price.


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