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ExxonMobil floats new Point Thomson plan



By Upstream staff 

US supermajor ExxonMobil has unveiled a new plan to develop the Point Thomson oil and gas field on Alaska’s North Slope, almost two months after an Alaska judge backed the state’s attempts to cancel leases at the field.

Alaska rejected ExxonMobil’s previous development plan in 2005, saying the owners, including operator ExxonMobil and fellow supermajors BP, Chevron and ConocoPhillips, had failed to develop the properties within the required timeframe.

No well has been drilled at Point Thomson since 1983.

The companies however argue that it is difficult to develop the field until a pipeline is built to bring North Slope natural gas to market. They are now suing to keep the leases to develop under a revised production plan.

In December, Superior Court Judge Sharon Gleason backed the state’s case, but also suggested the ExxonMobil-led joint venture might be given another chance to make its case.

In its new plan submitted to Alaska’s Department of Natural Resources, ExxonMobil plans to produce 200 million cubic feet of gas and 10,000 barrels of condensate per day from the field starting in 2014.

However, in the absence of a pipeline, the natural gas would be reinjected, while the liquids will be delivered through new and existing oil and condensates pipelines.

The company said it would invest $1.3 billion in development and in building production facilities, pipelines and other infrastructure. Development drilling would start as soon as this year, it said.

ExxonMobil said it would also install facilities to allow individual owners of the property to bid separately in an open season for a gas export line using their individual net production.

The company said further development of the field could see increased gas injection capacity, an expansion into oil production, gas exports or a combination of these options.


Wednesday, 20 February, 2008, 03:25 GMT  | last updated: Wednesday, 20 February, 2008, 08:17 GMT

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