The completed merger of oil and gas companies from Australia and Papua New Guinea may mean one of the largest conventional oil projects seen in Alaska in several decades will proceed.

Oil Search has held a majority interest in the Pikka development project on Alaska’s North Slope since 2017, which it purchased a 51% stake from US-based Armstrong Energy for $850 million.

Estimates indicate Pikka could produce approximately 80,000 barrels of oil per day in the early stages of production, topping at 120,000 bpd once development is complete.