NEWS BULLETIN

June 03, 2013 --- Vol. 19, No. 39June 2013

BP adding 2 rigs, $1B in investment

BP said in a press release issued this morning that it plans to invest an additional $1 billion in Alaska and add two drilling rigs over the next five years.

The company said the investment was in response to changes in the state’s oil tax policy signed into law in May by Gov. Sean Parnell.

Plans call for an increase in drilling and well work activity, upgrading of existing facilities and addition of as many as 200 new jobs in the state, the company said.

BP also said it has secured support from the other working interest owners at Prudhoe Bay to begin evaluating an additional $3 billion in new development projects in the west end of the Greater Prudhoe Bay Area, an investment that could continue for nearly 10 years.

The new rigs are expected to be in place in 2015 and 2016, increasing BP’s rig fleet in Alaska to nine, the company said.

Well work is expected to be increased “as soon as the fourth quarter of 2013,” BP said, focused on improving the performance of existing wells at Prudhoe Bay and Milne Point.

—Kristen Nelson

See story in June 9 issue, available online at 11 a.m., Friday, June 7 at www.PetroleumNews.com


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