ConocoPhillips to construct $900m project in Alaska, US

ConocoPhillips Alaska has approved funding for $900m project in the National Petroleum Reserve Alaska (NPRA) in the US.

Production from the new Greater Mooses Tooth #1 (GMT1) development is expected to come online in late 2018 with capacity to produce about 30,000 barrels of oil per day (BOD) gross at peak production.

ConocoPhillips Alaska president Joe Marushack said: "We are pleased to have been able to work through key permitting issues with the Corps of Engineers and BLM that now allows us to move into the development phase."

The company received permit to drill for the GMT1 project from the Bureau of Land Management (BLM) on 22 October and from the Corps of Engineers on 16 January.

As part of the development, ConocoPhillips will build a new gravel pad, a 7.7 mile road, facilities and pipelines.

In addition, the project will have nine wells to start along with a capacity for up to 33 wells and oil will be processed through the existing Alpine Central Facility.

The company plans to begin construction works on the project in early 2017 which would continue through 2018.

During this period, the project is expected to create more than 700 jobs.

In October, ConocoPhillips brought new oil on stream through Alpine drill site CD5 and Kuparuk Drill Site 2S.

Situated within the boundaries of the NPRA, the GMT1 project will produce from lands owned by Kuukpik, Arctic Slope Regional and BLM.

ConocoPhillips Alaska will operate the project and holds a 78% interest it. The remaining 22% is held by Anadarko.

The company submitted an application with BLM on 22 July 2013 for issuance of a grant and related authorisations to construct and operate a drill site, access road, pipelines, and ancillary facilities to support development of petroleum resources in GMT1.

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Image: Oil from GMT1 will be processed through the existing Alpine Central Facility in Alaska. Photo: courtesy of ConocoPhillips Company.