Santos says ConocoPhillips road dispute not slowing Alaska oil project -Breaking
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© Reuters. FILE PHOTO. The ConocoPhillips logo is shown on a floor of the New York Stock Exchange, U.S.A, 13 January 2020. REUTERS/Brendan McDermid/File Photo/File Photo/File PhotoMELBOURNE, (Reuters) – Friday’s Alaska road access dispute between Santos Ltd and ConocoPhillips was settled by Santos Ltd (NYSE:). They said their disagreement did not hinder work on the Pikka $3 billion oil project nor the efforts of the Australian gas producer to sell its share.
Santos turned down a ConocoPhillips proposal to make $95m for long-term roads access on U.S. oil producer Kuparuk River Units (KRU) and adjacent to Santos’ Pikka project, which Oil Search (OTC). acquired last year.
Santos instead applied for an Alaska Department of Natural Resources land use permit. It was granted on March 29. This is in anticipation of a long-term agreement between Santos and the other companies.
ConocoPhillips contested the decision on April 5. The department’s commissioner Corri Feige has allowed Oil Search to reply until June 7, before she makes a decision.
A spokesperson for Santos stated in an email that there has been “no impact on access and the land permise granted to Santos from the Division of Oil and Gas (29 March) remains valid.”
Although the Pikka Project is expected to be completed by the end of the year, the company plans to also sell its 51% interest in the project. It hopes to make as much as $3 billion this year from asset sales.
The spokesperson stated that there has not been any impact on the saledown.
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