Petroleum

Petroleum

Conoco: $283 million 4th quarter profit

ConocoPhillips reported a $283 million in adjusted earnings for the fourth quarter, 2017, and $652 million for the year, the company said Feb. 1. Production was up 4,000 barrels per day in 2017 to an average of 167,000 barrels per day. ConocoPhillips owns major shares of the Prudhoe Bay, Kuparuk River and Alpine fields on the North Slope. Also on Feb. 1, the compa-
ny reported that it will acquire Anadarko Petroleum Corp.’s 22.45 percent stake in the Alpine oil field, where ConocoPhillips is majority owner, as well as Anadarko’s share of new projects under development in the National Petroleum Reserve-Alaska.

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BP contract to Bristol Bay company

BP awarded a contract for pipeline and infrastructure integrity inspections to Kakivik Asset Management, a subsidiary of Bristol Bay Native Corp. The contract was previously held by Mistras Group. Kakivik and other BBNC companies, such as CCI Industrial Services, have been engaged in quality-control inspection work for years on the slope. CCI employs 242, which won’t change. Mistras employed union workers and 182 of its 261 employees are represented by the Quality Control Council of the United States, its bargaining unit. Kaki- vik is nonunion. Kakivik said it will hire more than 200 on the contract. Mistras laid off its 261 workers. Many of those are likely to work for Kakivik. The contract will change April 1.

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Merged Agrium considers Kenai plant

Alberta-based Agrium Corp, owner of the closed Kenai fertilizer and ammonia plant, has merged with Potash Corp., of Saskatchewan, to form a new company, Nutrien. Agrium has been working on a possible restart of the plant but that is now on the back burner as the new company sets its priorities, which is expected to take about six months. The biggest challenge in the plant restart is securing a supply of natural gas at reasonable prices. At full capacity, the plant would need about 155 million cubic feet of gas per day, or 56 billion cu. ft. per year. That compares with about 33 billion cu. ft./year used by Enstar Natural Gas, the regional gas utility. A restart would cost about $275 million, Agrium estimated.

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Hilcorp: $285 million in Alaska

Hilcorp Energy will spend about $285 million in its Alaska operations in 2018 with $83 million planned for new drilling; $106 million in various facility upgrades and $96 million for operations. The company is working on its new Moose Pad project in the Milne Point field on the North Slope and plans seven new wells in Cook Inlet including ve at its offshore Steelhead platform and two onshore wells at the Swanson River oil eld
or in new gas exploration. More onshore wells could
be drilled, also. Hilcorp briefed local business leaders recently in Kenai on the company’s plans.

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Murkowski to Zinke: Drop some OCS

Sen. Lisa Murkowski asked Interior Secretary Ryan Zinke to remove areas in the Gulf of Alaska and Bering Strait region off western Alaska from a proposed Outer Continental Shelf leasing plan. Murkowski said she supported proposed sales in the Arctic and Cook Inlet. Zinke has already removed areas off Florida’s coast from the OCS plan after protests from Florida’s governor, who is a Republican. ***

Bank of China officials in Alaska

Bank of China officials were in Anchorage Jan. 23 to assure Alaskans of the bank’s serious interest in helping nance the proposed $43 billion Alaska LNG Project. The managing director of the bank’s New York branch, spoke at the Alaska World Trade Center’s annual conference promoting trade ties between Alaska and China. Many details are yet to be worked out on the deal. Sinopec, the Chinese energy company, would be a major customer; Bank of China would provide financing and China Investment Company would be an investor.

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