Santos Ltd. played down on April 22 an Alaska road access dispute with ConocoPhillips, saying their feud was not slowing work on the $3 billion Pikka oil project or the Australian gas producer's efforts to sell its stake in it.
Santos rejected a proposal by ConocoPhillips to charge $95 million for long-term access to roads on the U.S. oil and gas producer's Kuparuk River Unit oil fields, next to the Pikka project run by Oil Search, which Santos acquired last year.
Instead, Santos applied to the Alaska Department of Natural Resources for a land use permit, which it received on March 29, pending an agreement between the two companies on the long-term access.
ConocoPhillips challenged that decision on April 5 and the department's commissioner, Corri Feige, has given Oil Search until June 7 to respond before she decides on the appeal.
"There has been no impact to access and the land permit granted to Santos by the Division of Oil and Gas on March 29 remains current," a Santos spokesperson said in an email.
While the company expects the Pikka project to be ready for a final investment decision by mid-year, it is also trying to sell its 51% stake in the project, as it looks to raise up to $3 billion from asset sales this year.
"There has been no impact on the selldown process," the spokesperson said.
2022-05-17 - Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively.
2022-04-14 - Analysts said the industry must drill new wells going forward because the number of DUCs available was dropping fast. That drilling increase was likely already coming, at least in the nation’s biggest oil shale basin, the Permian Basin.
2022-03-18 - U.S. oil rigs fell three to 524 this week, while gas rigs rose two to 137—their highest since October 2019, Baker Hughes said.
2022-03-11 - In its latest report, Baker Hughes said the total count of oil and natural gas rigs in the U.S. is up 261 rigs, or 65%, over this time last year.
2022-04-08 - More than half of U.S. oil rigs are in the Permian Basin in West Texas and eastern New Mexico where total units this week jumped by nine to 332, the most since April 2020.