An oil company, Santos Ltd, has finalized a deal with ConocoPhillips over road access to the Pikka field in Alaska’s North Slope. The 75 miles of roads in ConocoPhillips’ Kuparuk River field were a point of contention, but the agreement has resolved the issue, allowing for the production of 80,000 barrels of oil daily at Pikka.
The state of Alaska is also involved in a legal battle with ConocoPhillips over road access, which is still ongoing. However, Santos has successfully negotiated a commercial agreement with ConocoPhillips, ensuring access to the roads for its operations in the region.
The agreement includes a $4 million base fee, monthly maintenance fees, and additional charges once development begins in other nearby fields. It allows Santos to access its prospects in the Horseshoe and Quokka fields as well as joint leases for which it is the operator.
Santos emphasized the importance of certainty of access for future development in Alaska. ConocoPhillips has maintained that it has not blocked other operators from using the roads and has welcomed the agreement with Santos as a commercial practice on the North Slope.
While the legal battle between the state and ConocoPhillips continues, the resolution of the dispute between Santos and ConocoPhillips sets a precedent for future agreements between oil and gas operators in the region.
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