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Petroleum

Arco Alaska Inc. to Invest $800 Million in North Slope Operations

Strategic Insights

— 2 min read

Arco Alaska Inc., a subsidiary of Atlantic Richfield Corp., plans to invest $800 million in its Alaskan operations over the next five years, including $200 million in new exploration projects. The company intends to drill 600 new development wells in producing North Slope oil fields, such as the Kuparuk, Milne Point, Lisburne, and the eastern side of the Prudhoe Bay field. Arco's North Slope producing properties are an integral part of the company's extensive West Coast refining and marketing operations.

Key Takeaways:

  • Arco Alaska Inc. will invest $800 million in its Alaskan operations from 1995 through 1999, with $200 million earmarked for new exploration projects.
  • The company plans to drill 600 new development wells in producing North Slope oil fields, including the Kuparuk, Milne Point, Lisburne, and the eastern side of the Prudhoe Bay field.
  • Arco remains committed to continued investment in Alaska despite recent cutbacks, with 65% of its worldwide reserves and 60% of its production located in the state.
  • The company aims to reduce costs to ensure new production remains profitable, even with potential dips in oil prices.
  • Arco has cut 750 workers from its Alaskan workforce of 2,350.
  • The company has successfully implemented a coiled-tubing technique to lower well costs, allowing for increased oil recovery in the Prudhoe field.
  • Arco plans participation in three to five new test wells in the coming winter exploration season, including one on the Kenai Peninsula and another on the Colville River delta.
  • The company is continuing to evaluate complex reservoir geology on the Sunfish field, with a potential development decision to be made later this year.
  • Arco has expanded its pilot enhanced oil recovery project in the Kurapuk River field and plans to increase sites from three to 20.

Statistics:

  • $800 million: Total investment in Alaskan operations from 1995 through 1999.
  • $200 million: Amount invested in new exploration projects.
  • 600: Number of new development wells planned.
  • 65%: Percentage of Arco's worldwide reserves located in Alaska.
  • 60%: Percentage of Arco's production located in Alaska.
  • 750: Number of workers cut from Arco's Alaskan workforce.
  • 2,350: Size of Arco's Alaskan workforce.
  • 12 billion bbl: Estimated oil recovery in the Prudhoe field.
  • 9.6 billion bbl: Initial estimate of oil recovery in the Prudhoe field.
  • 3-5: Number of new test wells planned for the coming winter exploration season.
  • 20: Number of drill sites for the enhanced oil recovery project in the Kurapuk River field.
  • 1.5 billion bbl: Estimated recoverable reserves in the Kurapuk River field.
  • 800 million bbl: Oil recovery boost in the Prudhoe Bay field due to natural gas use.

Sources:

  • Arco Alaska Inc. press release.
  • Anchorage Daily News, "Arco to Invest $800 Million in Alaska Over Five Years".
  • Thompson, Ken, President of Arco Alaska, address to Anchorage business leaders.
  • Atlantic Richfield Corp. press release.

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