NEWS BULLETIN

March 07, 2016 --- Vol. 22, No. 14March 2016

Prudhoe Bay rig count to drop to 2

At a Feb. 29 hearing before the House Resources Committee, BP Exploration (Alaska)'s Joe Reese, the company's senior managing tax counsel, said BP was looking at a 13 percent reduction in force and working with partners at Prudhoe Bay to right size there.

The decision on Prudhoe right sizing has now been made.

BP said in a March 7 statement:

"In response to the lower oil price environment, the Prudhoe Bay working interest owners are reviewing the appropriate level of activity this year. As a result, BP has been asked to plan to reduce the Prudhoe Bay rig fleet over the next few months. There are currently five Prudhoe Bay rigs and the decision of the working interest owners will reduce the fleet to two rigs."

The company went on to say that it "is committed to maintaining a safe and compliant business in Alaska that is sustainable."

"In the low oil price environment improving our cost base is critical to maintaining a sustainable business at Prudhoe Bay and the long-term viability of an Alaska LNG project."

- KRISTEN NELSON

See story in March 13 issue, available Friday, March 11 at www.PetroleumNews.com


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