IRVING, Texas, April 13 /PRNewswire/ -- Exxon Mobil Corporation
(NYSE: XOM), BP, ARCO and Phillips Petroleum announced today that they have
reached an agreement to resolve outstanding issues relating to the ownership
and operation of the Prudhoe Bay Unit (PBU) and the Point Thomson Unit (PTU)
in Alaska. The agreement will optimize operations, reduce costs and
facilitate new oil and gas development in the state for the benefit of the
unit owners, the State of Alaska, and its residents.
The agreement, which is subject to the completion of the BP Amoco-ARCO
merger and assumes Phillips' acquisition of ARCO's Alaskan assets, aligns the
respective equity interests of ExxonMobil, BP and Phillips in the Prudhoe Bay
Unit, and provides for a single operator at the PBU. The aligned oil and gas
interests among the major owners will be 36.8 percent for ExxonMobil,
36.5 percent for Phillips, and 26.7 percent for BP. BP, current operator of
the Western Operating Area in the Prudhoe Bay Unit, will become the single
operator. The agreement also aligns interests between ExxonMobil and BP in
the Point Thomson field area at 55 percent and 45 percent, respectively.
In addition, it resolves the issues that resulted in recent legal action
by ExxonMobil relating to North Slope preferential rights and field
operatorship.
According to the companies, the agreement provides key advantages for all
parties involved:
-- It will retain three major working-interest owners in the PBU
(ExxonMobil, BP and Phillips).
-- It establishes a single operator at Prudhoe Bay, thus providing cost
and ultimate recovery advantages.
-- It provides a more even distribution of liquids production among the
three major working-interest owners. Since today's signing is an
agreement between the major-interest companies and still must be agreed
to by the minor-interest owners, final equity percentages have not been
determined. However, ExxonMobil's and Phillips' liquids production
will increase by approximately 30,000 barrels a day respectively, and
BP will acquire additional interest in the PBU gas cap and at Point
Thomson.
-- It would remove the need for lengthy and complex agreements between
parties with different interests. The elimination of that step may
contribute to improved timelines for new economic developments within
the PBU.
Additionally, Phillips will become a major new operator of the North Slope
Kuparuk and Alpine fields, following FTC review and closing of the ARCO Alaska
acquisition.
The companies stated that the agreement will not only help ensure the
efficient and long-term production of the fields, but also will facilitate
future Alaska development, including gas commercialization.
SOURCE Exxon Mobil Corporation
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CONTACT:
Tom Cirigliano of Exxon Mobil Corporation,
972-444-1109
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