Repsol gaining confidence on plan

Repsol YPF will decide whether to pursue a development in Alaska early next year.

The Spanish supermajor intends to make a decision about its proposed North Slope development after completing a three-well appraisal program currently under way, Chief Executive Officer Josu Jon Imaz told analysts during a March 2 earnings call.

Although warning that the company would need to wait to see the results of the current exploration program before it could make a decision, Imaz said there was a “a high probability” of drafting a development plan and making a decision in early 2016.

In early 2013, after completing its second drilling season in Alaska, the company announced three discoveries in the region between the Kuparuk River and Colville River units. The company returned to the region in early 2014 to drill two more wells and is planning three for this year. The well locations have been increasingly concentrated.

The company has previous given hints that it expects to sanction a project. In January 2014, Repsol Alaska Project Manager Bill Hardham said, “I feel confident it’s coming. It’s not a matter of if, but when.” That May, Chief Financial Officer Miguel Martinez said, “We are working toward defining the most economical way to develop the area.”

- Eric Lidji