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Petroleum industry

Prudhoe Bay Expansion Project to Feature Largest-Ever Built in Alaska

Strategic Insights

— 1 min read

The Prudhoe Bay expansion project aims to increase oil output by 20,000 barrels daily, with a six-story, 2,700-ton gas-compression module serving as its centerpiece. The module, largest ever built in Alaska, will be assembled by Veco Construction Inc. starting next month at the Port of Anchorage. At its peak, the module construction is expected to employ 120 people, while another 15 jobs will be created in Fairbanks to build a pipe network. The project's total cost is estimated at $160 million, with the module accounting for about half of it. The expansion will increase Prudhoe's daily output by 20,000 barrels by late 1999, bringing total daily production to over 720,000 barrels.

Key Takeaways:

  • The Prudhoe Bay expansion project aims to increase oil output by 20,000 barrels daily, with a completion date of late 1999.
  • The six-story, 2,700-ton gas-compression module, the largest ever built in Alaska, will be assembled by Veco Construction Inc.
  • At its peak, the module construction is expected to employ 120 people, while another 15 jobs will be created in Fairbanks to build a pipe network.
  • The project's total cost is estimated at $160 million, with the module accounting for about half of it.
  • The Prudhoe Bay partners, who will split the costs based on their stakes in the field, include BP Exploration (Alaska) Inc. (50%), Arco (21%), and Exxon Corp. (21%).
  • Five companies vied for the contract to build the large module, with Veco being selected based on cost, safety, and value of Alaska fabrication and construction.
  • Veco Construction Inc. has done hundreds of smaller modules for Alaska's oil patch and sees the project as a chance to broaden its reach.

Statistics:

  • 20,000 barrels: increase in daily oil output by late 1999.
  • 2,700 tons: weight of the gas-compression module.
  • 6 stories: height of the gas-compression module.
  • $160 million: total cost of the project.
  • 120 people: maximum number of workers employed in module construction at the Port of Anchorage.
  • 15 jobs: number of workers employed to build a pipe network in Fairbanks.

Sources:

  • Arco Alaska Inc. (no date provided)
  • Veco Construction Inc. (no date provided)
  • BP Exploration (Alaska) Inc. (no date provided)
  • Exxon Corp. (no date provided)

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