Unocal ups capital spending in Alaska

Kay Cashman

Petroleum News publisher & managing editor

Unocal expects to invest $60 million in capital and exploration projects in Alaska in 2004, $15 million more than the company spent in 2003. The increased spending is largely the result of Unocal’s recent natural gas discovery at Happy Valley on the southern Kenai Peninsula (see page 1 story in last week’s Petroleum News), the company’s top executive in Alaska told the Resource Development Council in Anchorage Nov. 20.

Unocal Alaska Vice President Chuck Pierce said the $45 million Unocal expects to spend in capital and exploration projects this year is part of a total Alaska budget of approximately $175 million.

“We are on course to drill another five to 10 exploration wells in the next three years,” he said. In the last three years Unocal has either drilled or participated in drilling 11 exploration wells for a net capital cost to Unocal of $60 million.

Editor’s note: Next week’s issue will have an interview with Chuck Pierce following the RDC conference.