![]() Last week, Santos said the Pikka Phase 1 project had received all major environmental and regulatory approvals and is on track to be final investment decision-ready by mid-2022. “There has been no impact on the sell down process,” the Santos spokesperson added. Santos is trying to find a buyer or buyers for its 51% interest in Pikka.ĬonocoPhillips, Alaska’s largest crude producer, has already held talks with Oil Search regarding a possible stake purchase and is still seen as a potential bidder for Santos’ holding. “There has been no impact to access and the land permit granted to Santos by the Division of Oil and Gas on 29 March remains current,” a Santos spokesperson told Upstream. However, the commissioner reportedly denied a request from ConocoPhillips to put a hold on the land use permit while the appeal is being considered. ![]() “As such, ConocoPhillips has filed a notice of appeal with the commissioner of the DNR.”įeige has granted ConocoPhillips until 18 May to file additional information and has given Oil Search until 7 June to respond, according to a subsequent missive she sent to the two companies. “ConocoPhillips Alaska is disappointed by the Alaska Department of Natural Resources Division of Oil and Gas’ recent decision to issue the miscellaneous land use permit that does not acknowledge the Kuparuk River Unit’s rights of ownership and investments in unit facilities,” a spokesperson for the US operator told Upstream. The Alaska Department of Natural Resources late last month granted access until the two companies can reach a road use agreement.ĬonocoPhillips is challenging that permit on the grounds the department “improperly granted” Oil Search “access to KRU roads that are the private property of the KRU lessees”, according to a letter dated 5 April - and reviewed by Reuters - from the company to department Commissioner Corri Feige. Oil Search reportedly rejected ConocoPhillips’ proposal to pay $95 million in fees and applied to the state for a permit to access the roads. The appeal marks the latest chapter in a dispute over tariffs charged by the US major for the use of roads in the Kuparuk River Unit field, which is adjacent to Pikka in the Alaskan North Slope, according to Reuters.Īustralia’s Santos is now the operator of Pikka after acquiring Papua New Guinea-based Oil Search in 2021. In a quarterly report on Thursday, Santos reaffirmed its guidance on Pikka, saying the project's Phase 1 has received all major environmental and regulatory approvals and is on track to be ready for a final investment decision by mid-year.ConocoPhillips is challenging the terms of a land use permit issued by the US state of Alaska in a dispute that could threaten the timely development of Santos’ $3 billion Pikka oilfield. ![]() ConocoPhillips, the largest oil producer in Alaska, had earlier held talks with Oil Search to buy a stake in Pikka and is still seen as a likely bidder. The roads dispute casts a cloud on Santos' effort to attract buyers for its 51% stake in Pikka. Register now for FREE unlimited access to RegisterĬonocoPhillips is challenging that permit on the grounds the department "improperly granted" Oil Search "access to KRU roads that are the private property of the KRU lessees", according to a letter dated April 5, and reviewed by Reuters, from the company to department Commissioner Corri Feige.įeige has granted ConocoPhillips until May 18 to file additional information and given Oil Search until June 7 to respond, according to an April 8 letter reviewed by Reuters from Feige to the two companies.įeige denied a request from ConocoPhillips to put a hold on the land use permit while the appeal is being considered.
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