Phillips to increase Alaska spending - July 28, 2000

Providing coverage of Alaska and northern Canada's oil and gas industryJuly 2000

Vol. 5, No. 7

Week of July 28, 2000

Phillips to increase Alaska spending

by The Associated Press

Thanks to higher-than-expected oil prices, the ARCO Alaska Inc. buy is “looking very good,” Jim Mulva, Phillips Petroleum Co.’s chief executive, said July 12. Phillips bought ARCO Alaska expecting long-term oil prices of about $18.50 per barrel.

Phillips has accelerated its repayment of the $6.5 billion debt it took on to purchase ARCO Alaska. The company also plans to increase its investment spending in Alaska by $35 million to $550 million this year.

Phillips will need to find oil, Mulva and Phillips Alaska president Kevin Meyers said. The company will spend $50 million to drill at least 12 exploration wells in the coming year. Its goal is to hold production to between 350,000 and 400,000 barrels a day for the next five years.

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