ConocoPhillips is ready to develop its Nuna field project in Alaska and expects a peak oil rate of 20,000 barrels per day from the site, the company said in a press release.
Construction will begin this year at ConocoPhillips’ 3T drill site at its Kuparuk River unit and continue into 2024 with pipe and bearing construction, the company said. Drilling is expected to begin in late 2024 and ConocoPhillips expects first oil in early 2025.
ConocoPhillips said it acquired the Nuna acreage in 2019 from Caelus, which had already built the gravel road and platform for the drill site.
The Nuna project will add 29 development wells, on-pad infrastructure and pipelines that will connect to the existing Kuparak processing facilities, the company said.
“The additional drilling opportunities we have identified at Nuna are a positive development that should increase oil production at Kuparuk,” said ConocoPhillips Alaska President Erec Isaacson.
“Our investment in this project was approved because of Alaska’s stable tax regime that is clearly working to promote new and ongoing investment,” he said.
According to the press release, ConocoPhillips Alaska plans to continue an investment of about $1 billion annually to expand its “legacy business with projects like Nuna.”
First quarter results
In May, ConocoPhillips posted first-quarter 2023 earnings and adjusted earnings of $2.9 billion, or $2.38 per share, from January to March 2022 earnings of $5.8 billion, or $4.39 per share, and adjusted earnings of $4.3 billion, or $3.27 million per share. in the first quarter of 2022. Earnings declined from the first quarter of 2022, primarily due to lower realized prices, partially offset by business performance and timing, the company said in a separate earnings release.
According to the statement, the company delivered record production of 1.792 million barrels of oil equivalent (MMboed) in the first quarter, an increase of 0.045 Mboe compared to the same period a year ago. After adjusting for the impacts of closed acquisitions and dispositions, production for the first quarter of 2023 was up 4% from the same period a year earlier, the company said.
In the Lower 48, which refers to the 48 contiguous US states excluding Alaska and Hawaii, first-quarter production averaged 1.036 MMboed, including 0.694 MMboed from the Permian, 0.227 MMboed from the Eagle Ford and 0.098 MMboed from the Bakken, according to the communicated . ConocoPhillips said a stabilizer expansion at Eagle Ford and a planned turnaround at QatarGas 3 were successfully completed.
The production increase was primarily driven by new wells coming online in the Lower 48 and improved well performance across the portfolio, partially offset by normal field decline and downtime, the company said.
“Our first quarter results are a clear demonstration of the durable, performance-focused value proposition we presented at our recent analyst and investor meeting,” said ConocoPhillips Chairman and CEO Ryan Lance.
The company’s Alaska unit reported net income of $416 million in the first quarter of 2023, according to a separate press release.
Earlier this year, the Biden administration approved ConocoPhillips’ controversial Willow project on Alaska’s North Slope, a sign that governments are struggling to balance energy security and clean energy goals, according to Vice President Rystad Energy, Radhika Bansal. ConocoPhillips said the Willow project is estimated to produce 180,000 barrels of oil per day at its peak and is expected to provide $8 billion to $17 billion in new revenue for the federal government, the state of Alaska and the communities of North Slope Borough.
According to the company’s website, ConocoPhillips is Alaska’s largest crude oil producer and the largest owner of exploration leases, with approximately 1.2 million net undeveloped acres as of 2022. The company has significant stakes in two of North America’s largest legacy conventional oil fields: Kuparuk and Prudhoe Bay, both located on the North Slope of Alaska. ConocoPhillips also operates several fields on the Northwestern Slope.
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