Contributed by Mike Anderson
Today U.S. Senator Dan Sullivan (R-AK) congratulated the state of Alaska and ExxonMobil for beginning production at the Point Thomson project on Alaska’s North Slope, Exxon’s first operated project in Alaska. The challenging field, which over the decades had numerous plans for development, contains a quarter of the North Slope’s massive natural gas reserves. Development of the field is a foundational element in a project that will commercialize Alaska’s North Slope natural gas.
In an announcement, ExxonMobil said that the field will soon be producing up to 10,000 barrels per day of natural gas condensate and 200 million cubic feet of recycled gas. These are production levels in line with the terms negotiated with ExxonMobil by Senator Sullivan when he first was the Alaska’s attorney general, and then the commissioner of the Department of Natural Resources. Settling the terms of development in Point Thomson was one of Senator Sullivan’s top priorities.
“The announcement that production has started at Point Thomson is very good news for Alaska,” Senator Sullivan said. “I’m pleased that ExxonMobil has abided by the terms of the agreement that I, along with my team, negotiated. The terms include firm time tables and strong Alaska-hire provisions. So far, the company has spent more than $4 billion on developing the field and has contracted with more than 100 Alaskan companies. The 10,000 barrels a day of condensate that will soon be flowing down the trans-Alaska oil pipeline will help boost state coffers, will help ensure uninterrupted flow through TAPs, and will open up the eastern North Slope for additional exploration and development. Further, production of the field brings us closer to realizing an Alaska natural gas pipeline.”
