NEWS BULLETIN

April 08, 2008 --- Vol. 14, No. 39April 2008

BP joins ConocoPhillips on Alaska gas pipeline

BP and ConocoPhillips said this morning that they have combined resources on an Alaska gas pipeline project.

The companies are calling the project Denali - The Alaska Gas Pipeline. It will move some 4 billion cubic feet of natural gas per day to markets, the companies said, and “will be the largest private sector construction project ever built in North America.”

An open season is planned to begin before the end of 2010, with a $600 million spend to reach that point. Following a successful open season the companies said they plan to obtain Federal Energy Regulatory Commission and National Energy Board certification and move forward with construction.

“The Alaska gas pipeline will be an historic project and we are pleased to be working with ConocoPhillips to move it forward,” Tony Hayward, BP Group Chief Executive, said in a prepared statement from the companies.

Jim Mulva, ConocoPhillips chairman and chief executive officer, said: “ConocoPhillips is pleased to be working with BP on this project; our companies have a long history of successfully developing projects on Alaska’s North Slope, in Canada, and around the world. The time is right to start moving this project forward.”

The companies said the project consists of a gas treatment plant on the North Slope and a large-diameter pipeline to Alberta. If additional pipelines are required into the Lower 48, “BP and ConocoPhillips will seek other equity partners, including pipeline companies, who can add value to the project and help manage the risks involved.”

Staff have been assigned to the project; project headquarters will be in Anchorage; and a new company will be formed to manage the project.

Editor’s note: see story in April 13 issue of Petroleum News, available online to subscribers at noon, Friday, April 11, at www.petroleumnews.com.


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