ConocoPhillips Alaska Project Achieves First Oil Early

ConocoPhillips Alaska recently achieved first oil—ahead of schedule—at its Coyote 3SX development in the Kuparuk River Unit on Alaska’s North Slope (Oil & Gas Journal).

What’s going on: The approximately $800 million development, which reached the milestone on Aug. 7, is located on state land.

• It is expected to reach gross peak oil production of about 12,000 barrels per day.

• While the development uses existing infrastructure, it also “includes a pad expansion, installation of more than 20 miles of pipeline and a 19-well drilling program.”
• Construction on Coyote 3SX began early this year and peaked in April with about 365 workers on the site.

Why it’s important: The “project helps maximize the value of legacy assets, support Alaska jobs, strengthen throughput in the Trans-Alaska Pipeline System (TAPS) and deliver safe, reliable domestic production,” the Resource Development Council for Alaska wrote in a LinkedIn post congratulating ConocoPhillips on the news.

• ConocoPhillips invests about $1 billion a year in its oil and gas work in Alaska.