ConocoPhillips Alaska continues its expansion
ConocoPhillips reports year-end review
ed in the Kuparuk River Unit, which will include a pad expansion, pipeline installa- tion and a 19-well drilling program. These investments reinforce our long-term com- mitment to Alaska and continue to support economic growth and job creation.” “We have invested more than $3.6 billion in Alaska projects in 2025, demonstrating our confidence in Alaska’s resource base and the value of a stable and competitive fiscal regime.” Since 2007, ConocoPhillips Alaska has
In 2025, ConocoPhillips Alaska incurred an estimated $1.3 billion in taxes and royalties, including $1 billion to the State of Alaska and nearly $300 million to the federal government. ConocoPhillips Alas- ka reported a net income of $730 million for the year. “Progress continues on the Willow project, which will achieve nearly 50% completion during this winter season and remains on track for first oil in early 2029,” said Erec Isaacson, President of
way in its existing fields including Coy - ote, in the Kuparuk River field; CD-8, a new production pad in the Alpine field; and an expansion of the West Sak vis - cous oil production in the Kuparuk field, Romberg told legislators. First oil pro - duction at Coyote is expected in 2027 and 20 wells are planned. At West Sak, seven new wells are planned. The site has been producing viscous oil for sev - eral years, with 110 wells drilled to date. There is also Narwhal, with devel - opment permitting now underway. Narwhal is planned for 25 wells, and although many of these will be extend - ed-reach horizontal wells drilled from existing infrastructure, there is poten - tial for a new drill site to reach reser - voir sections that are difficult to reach with horizontal wells. ConocoPhillips is spending about $1 billion a year, not including Willow, in ongoing develop - ment work in existing fields. Romberg said tax stability in Alas - ka over the last decade has encour - aged the company to keep investing in drilling and development, with the discovery of Willow and the new proj - ects in existing fields resulting from that. Until 2013, Alaska had a diffi - cult state production tax structure that discouraged companies, the result be - ing little new development. That year, the Legislature passed a major reform of the state’s oil tax policy, which has been unchanged since. Texas, a major oil producing state, has kept its state taxes on oil stable since 1951, legislators were told. The “government take” of production rev - enues is the same now as it was in 1951, Romberg said. Projects like Wil - low take years for exploration and de - velopment planning, 25 years in the case of Willow.
Tax stability has spurred new work, company says Work is winding down on Pikka, but things are still going full-bore at ConocoPhillips’ Willow project on fed - eral lands in the National Petroleum Reserve-Alaska (NPR-A) northwest of Pikka, which is on state lands. ConocoPhillips said it is about 50% complete on the Willow project. Con - struction continued this winter with about 3,000 workers on the North Slope, legislators were told in brief - ings by Barry Romberg, the company’s Alaska commercial and midstream vice president, and Colin Wolfe, finance vice president for ConocoPhillips Alas - ka. Willow is being built with three production pads and 180,000 barrels per day of new production at peak when the field begins operating, which is expected in early 2029. Romberg said work on fabrication and delivery of the Willow operations center was completed last year, in the winter of 2024-25, and the Wil - liow production facility fabrication and delivery began last year and will continue through 2028. Pre-drilling of production wells is scheduled to begin in 2027 with work to tie in the wells planned for 2028. During last year’s winter season, 12 modules were deliv - ered for the Willow operations center. ConocoPhillips also opened the Willow construction camp, which will allow year-round activity. More modules are still being fabri - cated on the U.S. Gulf Coast and will be delivered to the North Slope on a planned 2027 sealift. This will be for the Willow Central Facility, its oil and
EREC ISAACSON
incurred approximately $47 billion in taxes and royalties to the State of Alaska and the federal government. Of that amount, about $37 billion went directly to the state. In that same period, ConocoPhillips Alaska’s earnings were approximately $29 billion. — Courtesy ConocoPhillips Alaska
ConocoPhillips Alaska. “More than 2,400 jobs were filled to progress Willow critical scope in 2025, which included the construction of two bridges, installation of 72 miles of pipeline and beginning of year-round Willow camp occupancy. “We also sanctioned our Coyote major project locat-
HVAC • PLUMBING & HEATING • CONTROLS • SERVICE & MAINTENANCE • CERTIFIED AIR BALANCING • UV LIGHTING ONE SOLUTION. ONE COMPANY.
Photo Courtesy ConocoPhillips Alaska
gas processing plant. Modules are slated to be assembled there in 2028. Meanwhile, the company is pursu - ing an aggressive winter exploration, even with an $8 billion investment at Willow on its plate. Four explora - tion wells are planned this winter on a large leasehold position the company has in the NPR-A besides its Willow leases, Romberg and Wolfe told legis - lators. If new oil is discovered, which is considered likely, it will feed into the Willow processing facility. Willow is increasingly being con - sidered a hub for new development in the northeast NPR-A. Once complete, the processing plant and pipelines will provide vital infrastructure that has been extended into the federal petro - leum reserve. Meanwhile, ConocoPhillips is busy with a number of new projects under -
WWW.SHEETMETALINC.COM WE’RE MORE THAN JUST ALASKA'S PREMIER METAL FABRICATION FACILITY
— Tim Bradner
25
24
THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026
www.AlaskaAlliance.com
Made with FlippingBook - Online magazine maker