![]() "Oil Search has refused ConocoPhillips Alaska's efforts to negotiate," the ConocoPhillips spokesperson said. In a March 23 letter to the natural resources department reviewed by Reuters, ConocoPhillips said it proposed a $95 million one-time payment for use of its roads, in line with road fees Oil Search proposed two years ago when it sought debt funding from Alaska's state development bank to build roads and bridges for Pikka. The land permit "does not acknowledge the KRU's rights of ownership and investments in the road infrastructure", a ConocoPhillips spokesperson said in emailed comments to Reuters. "We always prefer and encourage private entities to work out mutual agreements for things like surface access amongst themselves on fair commercial terms, and continue to expect that will ultimately be the long term solution here," Derek Nottingham, the department's oil and gas director, said in an emailed comment to Reuters.Ī Santos spokesperson said the company was satisfied with the state's decision and still aims to have Pikka ready for a final investment decision in "mid-2022".ĬonocoPhillips has the right to appeal the issue of the land permit by April 18. The department approved the land use permit on March 29 to smooth the way towards development of the Pikka project until the companies reach a road use agreement. 9 letter to the Alaska Department of Natural Resources.Īfter rebuffing a ConocoPhillips' proposal for Oil Search to pay $95 million for long-term use of its Kuparuk roads, Oil Search applied to the Department of Natural Resources for a permit to access those roads, which are on state land. Santos needs access to Kuparuk's roads for its operations, the company said in a Feb. The Pikka project, the biggest new oil prospect on Alaskan state land in decades, is next to ConocoPhillips' Kuparuk River Unit (KRU) oil fields. ![]() In February, it flagged that the project would be ready for a final investment decision by mid-year. Santos is the operator of the Pikka oil project on Alaska's North Slope, acquired during its takeover of Oil Search last year. subsidiary, Oil Search Alaska, live in Alaska.Register now for FREE unlimited access to Register At present, about 98 percent of the employees for Santos’ U.S. Pikka will create an estimated 2,600 construction jobs and 500 permanent jobs, furthering the companies’ strong commitment to Alaska. Santos owns 51 percent of the project and Repsol holds a 49 percent stake. The Pikka project is projected to produce 80,000 barrels of oil per day by 2026. “Today’s announcement is great news for energy security, national security, and for economic and community development, including thousands of jobs for Alaskans, in our state where we have the highest environmental standards in the world.” “It’s exciting to see this project, which has been in the works since I was serving as Alaska’s Department of Natural Resources Commissioner, finally come to fruition,” Sullivan said. I appreciate the approach that Santos and their partner, Repsol, have taken to advance this project, their strong collaboration with local entities and communities, and their commitment to producing this resource with net-zero emissions from the project itself.” “The Pikka project will help refill the Trans-Alaska Pipeline System while creating good jobs for Alaskans and bolstering our nation’s energy security. ![]() “This is great news for Alaska that will strengthen our economy for a long time to come,” Murkowski said. Senators Lisa Murkowski and Dan Sullivan (both R-Alaska) today issued the following statements welcoming Santos’ announcement that it has approved a $2.6 billion investment for Phase 1 of its Pikka project on Alaska’s North Slope.
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