In a quarterly report on Thursday, Santos reaffirmed its guidance on Pikka, saying the project's Phase 1 has received all major environmental and regulatory approvals and is on track to be ready for a final investment decision by mid-year. Oil Search said that it intends to launch a formal sale process, either on its own or in cooperation with its joint venture partner, to sell 15 of its stake in Pikka and other key Alaskan assets. The Australian firm owns 51 stake in the Pikka project, while its Spanish partner holds 49 interest. ConocoPhillips, the largest oil producer in Alaska, had earlier held talks with Oil Search to buy a stake in Pikka and is still seen as a likely bidder. Oil Search owns 51 stake in Pikka project. The roads dispute casts a cloud on Santos' effort to attract buyers for its 51% stake in Pikka. read moreĬonocoPhillips is challenging that permit on the grounds the department "improperly granted" Oil Search "access to KRU roads that are the private property of the KRU lessees", according to a letter dated April 5, and reviewed by Reuters, from the company to department Commissioner Corri Feige.įeige has granted ConocoPhillips until May 18 to file additional information and given Oil Search until June 7 to respond, according to an April 8 letter reviewed by Reuters from Feige to the two companies.įeige denied a request from ConocoPhillips to put a hold on the land use permit while the appeal is being considered. Oil Search rejected ConocoPhillips' proposal to pay $95 million in fees and applied to the state for a permit to access the roads, which the Alaska Department of Natural Resources granted on March 29, until the two companies reach a road use agreement. uverse app, lawn mower with attachments, s&p oil & gas exploration & production select industry index. independent's Kuparuk River Unit (KRU), next to Pikka. Shop Now: oil search, up to 59 off, Only 2 Days. The appeal marks the latest move in a dispute between ConocoPhillips and Pikka developer Oil Search, which Santos acquired last year, over fees that Oil Search would pay ConocoPhillips to use roads in the U.S. Related infrastructure would include a production facility and pipelines, Repsol said in a statement.MELBOURNE, April 21 (Reuters) - ConocoPhillips (COP.N) is challenging a land use permit issued by the state of Alaska that may block the development of Santos' (STO.AX) $3 billion Pikka project, the biggest new oil project on Alaskan land in decades. The companies said they would make efforts to offset and reduce fossil-fuel emissions, including through use of natural gas instead of diesel fuel during operations.įully developing the first phase will involve drilling 45 wells from a single well pad. Mike Dunleavy said it “will continue the renaissance on Alaska’s North Slope.” Lisa Murkowski and Dan Sullivan lauded the plans for the Pikka project. Development could also generate billions of dollars in state and local tax revenue, primarily through royalties to the state.Īnother major North Slope oil prospect, ConocoPhillips’ Willow project, has been delayed by litigation and a new environmental review.Īlaska U.S. If developed, the field on state land east of the National Petroleum Reserve-Alaska could significantly boost the flow of oil through the trans-Alaska pipeline system. Santos, in a statement, said the funds will cover the initial phase of development at the Pikka field, with 80,000 barrels of oil daily expected to begin flowing in 2026. Activate your Online Access Now Article content If you are a Home delivery print subscriber, unlimited online access is included in your subscription.
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