Alaska North Slope gas producers agree on joint work program

Petroleum News Alaska

BP Exploration (Alaska) Inc., Phillips Alaska Inc. and ExxonMobil Production Co. said Dec. 6 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

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.