The U.K. supermajor
) has planned to invest $1 billion over five years in its Alaskan
operations to add two new drilling rigs for its North Slope
exploration. This proposal comes in the wake of the state's
recent oil production tax reform.
BP PLC (BP): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
To read this article on Zacks.com click here.
BP's new plan will increase drilling and well-work activity as
well as upgrade the existing facilities at its Alaskan fields.
The activity ramp-up, expected to commence from the fourth
quarter of 2013, will create employment for about 200 personnel
in the state and boost the performance of existing wells at the
Prudhoe Bay and Milne Point fields.
The British explorer will issue a request for proposals (RFPs)
starting this summer for the two additional rigs in Prudhoe Bay.
It expects the first rig to be in place by 2015 and the second in
2016. These two rigs will augment BP's rig fleet in Alaska to
BP has also received the support from other partners at Prudhoe
) - to begin appraisal of new development projects valued at $3
billion. The project would continue production for 10 years.
Located in the western end of the Greater Prudhoe Bay Area, these
projects would witness growth and acceleration of existing
facilities, building of a new drilling pad and the expansion of
existing pads. BP has a goal of drilling over 110 wells in the
region, the appraisal of which would take two to three years, per
the plan. Not only is the plan aimed at enhancing BP's
operations, it also promises to improve the state's economy.
The amendment to the Alaskan oil tax policy was signed into law
this month. This removed a progressive tax set up by the former
governor Sarah Palin in 2007. This alteration facilitates BP's
investments in other companies and the state of Alaska to
commercialize natural gas in the Alaska North Slope. This forms
part of a joint concept selection group that focuses on a South
Central Alaska LNG project.
Currently, BP carries a Zacks #3 (Hold).