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Tuesday, 02 December, 2008, 21:50 GMT | more >>

Point Thompson tweaked


New incentives for Alaskan gas prospect



By Upstream staff 

Four giant oil companies have received approval in Alaska to expand their stalled Point Thomson gas prospect in the North Slope.

Officials from the Alaska Department of Natural Resources (DNR) said they hope the move, which redefines the legal boundaries for the prospect, will spur long-awaited production from the remote, gas-rich field, Reuters reported.

Governor Tony Knowles said the unit expansion could help encourage production of the North Slope's vast natural gas reserves.

"We are very pleased that the owners are advancing this exciting oil and gas project at this time," Knowles said. "In addition to producing oil and liquids, the gas resources of this field could play an instrumental role in the development of a gas line from the North Slope."

The operator ExxonMobil estimates the field holds more than 8 trillion cubic feet of gas and 200 million barrels of recoverable condensate, state officials said.

BP, Chevron and Phillips are the three other partners.

Under the terms of the expansion, some leases that had been due to expire were renewed and included in the unit, with the stipulation that the leaseholders adhere to a drilling schedule, DNR said.

The schedule calls for an exploration well by 2004, development drilling by 2006, and seven development wells by 2008.

The unit expansion also increases the state royalty rate for certain leases, DNR said.


Wednesday, 14 November, 2001, 07:25 GMT  | last updated: Tuesday, 03 May, 2005, 15:22 GMT

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