Alaska ponders ExxonMobil loyalty vow
Alaska state officials are studying a written pledge by ExxonMobil to begin
condensate production at the long-dormant Point Thomson field on the North
Slope by 2014 in a bid by the major and its partners to avoid the
cancellation of their leases.
ExxonMobil and its partners BP, ConocoPhillips and Chevron have faced
widespread scepticism over their latest development plan, the 23rd submitted
by the partners, for Point Thomson.
The state of Alaska began proceedings to break up the Point Thomson unit and
cancel the leases in December 2006, citing the companies' failure to develop
the field.
The companies are now proposing the state approve their latest development
plan in return for an agreement not to oppose the breakup of the field unit
if the companies fail to put it into production by 2014.
"The (working interest owners) have the will, the incentive and the capability
to perform the 23rd (plan of development) completely. The Plan contains no
conditions or off ramps in lieu of performance that would excuse not
fulfilling the terms of the plan of development," said the ExxonMobil
submission.
ExxonMobil is seeking to combat scepticism amongst Alaskan officials and the
public over its $1.3 billion development plan proposed in February.
Point Thomson is thought to contain at least 11 trillion cubic feet of
recoverable natural gas and 200 million barrels of condensates. Developing
the field is viewed as a major step to building a pipeline to bring North
Slope gas to markets in the rest of the US.
ExxonMobil said in February it was prepared to start drilling on the field in
the winter of 2008-09 to begin initial production of 10,000 barrels per day
of condensate by 2014, Reuters reported.
26 March 2008 23:56 GMT
| last updated:
26 March 2008 23:56 GMT
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