Phillips to acquire more of trans-Alaska pipeline

Kristen Nelson

The Regulatory Commission of Alaska said June 15 that Phillips Transportation Alaska Inc. is planning to acquire a 3.0845 percent interest in the trans-Alaska pipeline system from BP Pipelines (Alaska) Inc.

The RCA said the companies filed a joint application. Phillips Transportation owns a 23.7108 percent interest in the trans-Alaska pipeline system and 22.66 percent in trans-Alaska pipeline system terminal tankage. The transfer would increase Phillips Transportation’s interest to 26.7953 percent of pipeline assets and 25.7445 percent of terminal tankage.

BP Pipelines’ interests would decrease to 46.9263 percent and 46.0955 percent respectively.

Phillips Alaska Inc. spokeswoman Dawn Patience said the realignment of Prudhoe Bay unit equity interests after Phillips Petroleum Co.’s acquisition of ARCO’s Alaska assets increased Phillips’ share of Prudhoe Bay production and made Phillips Alaska the state’s largest producer of oil and gas — some 360,000 barrels a day of oil equivalent.

“Phillips Alaska anticipates it will keep production levels between 375,000-400,000 for the foreseeable future,” Patience said, and as a result of its increased production, the company wants to increase its trans-Alaska pipeline capacity to move the incremental oil.