(Anchorage) Two oil and gas companies have announced their intention to invest 2.6 billion US dollars in the development of a major oil field on the North Slope of Alaska, in the United States.
Posted at 2:39 p.m.
Australia-based Santos and Spain-headquartered Repsol made the announcement, which was welcomed by political leaders in the state, reports the Anchorage Daily News.
Santos has a 51% stake in the Pikka project, and the company announced on Tuesday that its investment would amount to US$1.3 billion. Santos last year acquired Oil Search of Papua New Guinea, which was working to advance the project.
Santos, in a statement, said the funds will cover Pikka’s initial development phase, with 80,000 barrels of oil per day expected to begin flowing in 2026.
If developed, the Pikka project, located on state land in the Nanushuk oil field east of Alaska’s National Petroleum Preserve, could significantly increase the flow of oil through the trans-Alaska pipeline. The development could also generate billions of dollars in state and local tax revenue, primarily through royalties paid to the state.
In another major oil prospect on the North Slope, ConocoPhillips’ Willow project has been delayed by litigation and environmental re-examination.
Alaska senators Lisa Murkowski and Dan Sullivan praised Project Pikka’s plans. Republican Gov. Mike Dunleavy added that it “will continue the renaissance on Alaska’s North Slope.”
Companies will make efforts to offset and reduce fossil fuel emissions, including using natural gas instead of diesel fuel during operations, Santos and Repsol said.
Full development of the first phase will involve the drilling of 45 wells from a single well pad. Related infrastructure would include a production facility and pipelines, Repsol said in a statement.