ANCHORAGE, Alaska, March 1, 1999 (PRIMEZONE) -- Startup of the new Alpine field in mid-2000 is expected to increase ARCO's Alaska production from an expected 317,000 barrels of oil per day (BOPD) in 1999 to 325,000 BOPD in 2000 and to 347,000 BOPD in 2001, ARCO Alaska President Kevin Meyers said today in a speech to the Anchorage Chamber of Commerce.
"Despite record-low oil prices and the resulting spending cuts, we can still achieve our Alaskan production goal of "No Decline After '99,'" Meyers said." However, the oil price environment has led to a lower level of production turnaround than we previously expected."
"Longer term, with oil price recovery and continued exploration success, we expect to hold our share of North Slope production above 330,000 BOPD for the foreseeable future."
ARCO Alaska plans capital spending of $450 million in 1999, down $120 million from 1998. The company has halted development of West Sak heavy oil and with its partners, Exxon and BP Amoco, has slowed the pace of development drilling at Prudhoe Bay, Point McIntyre and Kuparuk.
The Point McIntyre enhanced oil recovery project, a major expansion of the Prudhoe Bay enhanced oil recovery project and Alpine development are moving forward. Alpine accounts for almost half of the company's 1999 capital budget.
More than 1,200 people are now at work in Alaska on the Alpine project, fabricating production facilities, building the necessary gravel infrastructure and installing more than 120 miles of pipeline. Development drilling will begin in April.
"Alpine is key to stabilizing our Alaska production," Meyers said. "The project is on schedule and will begin production in mid-year 2000, ramping quickly to 70,000 BOPD in 2001."
Alpine contains estimated proven and potential reserves of 365 million barrels. ARCO Alaska has a 78% working interest in the field. Anadarko Petroleum Corp. holds a 22% working interest.
ARCO Alaska, Inc. is a wholly owned subsidiary of Los Angeles based ARCO (NYSE:ARC).
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[Some of the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. Actual results could differ materially based on numerous factors, including the realized level of crude oil and natural gas production and other risks detailed from time to time in the company's reports to the Securities Exchange Commission, including the 1998 report on Form 10-K.]